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ELK PETROLEUM LIMITED (ASX:ELK)METGASCO LTD (ASX:MEL) - oil slumps to $44.20, 14604124, page-9 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

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ELK MEL

On a number of occasions I have posted a list of issues as to...

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jake0002

6,942 Posts.

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19/01/15

12:35

Post #: 14604124
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Originally posted by CSGguy ↑

Not a total waste of time Jake.

One of the reasons the ASX might use its discretion to insist on a shareholder vote under 11.1.2 of the listing rules would be if it was seen that MEL was acquiring a new main undertaking i.e. EOR in the US and abandoning its current main undertaking i.e. the Clarence Moreton Basin, even though ELK may be seen to be in a business of the same nature as MEL e.g. oil and gas development.

So to avoid any chance that the ASX would use its discretion to insist on a shareholder vote it is very important for MEL and its advisors to continue insisting that it is not in any way moving away from the Clarence Moreton.

If there was any suggestion that the March funding mentioned by MEL was a settlement with the NSW Government to relinquish its existing PELs in the CMB it would be very hard for MEL to maintain this story.

See 3.2(4) of Guidance Note 12 below: -
"where the entity has previously disposed of or abandoned its main undertaking and it is proposing to acquire a business, or to make a series of acquisitions of businesses, that will become its new main undertaking (this applies whether its new main undertaking is of the same nature as, or a different nature to, its former main undertaking)."

So to avoid any chance of the ASX using its discretion expect to see a lot of statements from MEL and its advisors that it is not abandoning the CMB but that it has just been frustrated at every turn.

Expand

On a number of occasions I have posted a list of issues as to why any move of its operations, and the use of its limited funds, into a jurisdiction outside of Aust, is of sufficient and material change such that the s/h of MEL should get the opportunity to VOTE on the change, and to get an IER addressed to MEL s/h, to provide an independent opinion as to whether the transaction is in the best interests of MEL s/h.

One of the reasons I proffered, was that the move outside Aust involved MEL being opened up to a plethora of new risks.

One of those risks I identified was the legal system in USA.
One of the Aust companies I identified as having moved its cash and operations to the USA and Canada, and FAILING, was Molopo.

Have a read of the MPO ASX announcement just out.
MPO spent $M on buying O&G shale assets in USA and Canada, spent $M developing those wells, then sold them a loss, and is now trying to return the cash to s/h.
MPO is now being sued by its J/V partners, and now advises that it will not be able to return the cash to s/h until it has finalised the litigation.
Everyone is sueing everyone (as one does in USA)
Bargainhunters have already moved in and tied up the MPO register, but of course now all s/h are stymied until the litigation is resolved.

http://www.asx.com.au/asxpdf/20150119/pdf/42w1sst4nzpstx.pdf

ELK Price at posting: 3.0¢ Sentiment: None Disclosure: Not Held

MEL Price at posting: 3.9¢ Sentiment: None Disclosure: Not Held
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