Sorry was busier with other stocks, but here are the pointers:1....

Sorry was busier with other stocks, but here are the pointers:

1. Yes undervalued for a company with substantial cash relative to market cap, esp. if OIP's interest to its tenements have booked resources (esp. when ESG is the operator, eventually STO)

2. M&A in CSG sector ongoing with all mid-tier players being taken over eg. ESG, BOW. MEL is the last one standing. OIP could be a target as well.

3. June announcement of Strategic Review seems to have no update, as one of the options was to merge with Energetica (something that ESG nomimated directors was dismissing that idea from the former directors), this could be due to the fact that ESG is now being taken over by STO. One possibility is that OIP could be taken over by STO at a later stage.

4. STO previously said they were willing to spend up to $100m in proving up and increasing the reserves in the Gunnedah Basin. This backs the possibility in point 3, that OIP can be taken over by STO. Out of that $100m, OIP being a $5m company isn't too hard to be part of that $100m program.

5. China's CGNPC's possible takeover for Kalahari Minerals can be a case for the STO takeover of ESG. Under the Corporations Act, the bidder for a target company that has greater than 20% stake in another company, must make a takeover of that other company as well, unless conditions where the bidder applies for a waiver exemption. So in CGNPC's case with Kalahari is EXT (where Kalahari has approx 43% stake), so in the STO-ESG-OIP case. ESG has 23% which is greater than the 20% mark.

So we shall see what happens.