read well - latest announcement

Read this part of the latest announcement properly before deciding about selling.

"BEACH ENERGY LIMITED TAKEOVER OFFER FOR ADELAIDE ENERGY LIMTED – UPDATE

The Board of Adelaide Energy Ltd (ADE) wishes to update the market of the following matters with respect to the above:
1. It appreciates the support of shareholders to date and notes the relatively low number of shareholders who have sold shares.
2. ADE wishes to remind shareholders that the offer does not close until 22 December 2011. The offer cannot be with-drawn prior to this date. Shareholders therefore have ample time to decide on the merits of the offer prior to making a decision.
3. Shareholders are urged to contact the Company should they require clarification or further information.
4. ADE expects to announce later today that it has formally appointed an Independent Expert to provide a report to the Board.
5. Beach Energy Ltd (BPT) continues to assert that the offer represents a significant premium to ADE shareholders. However, absent in BPT’s asserted VWAP figures are the large parcels of shares it itself acquired through recent placements at a price of 16.5c/share.
6. The Company received a communication from BPT yesterday regarding further data from the PEL 218 (Permian) drilling campaign that should be supplied to ADE shortly. There may be information contained in this data package which may influence any shareholder’s decision as to ADE’s value.
7. BPT’s assertion that remaining shareholders are likely to be diluted by future capital requirements of the Company is speculation. The Company is adequately funded for the next twelve months at least to proceed with its commitments and ongoing success in its ventures should facilitate accretive capital raising opportunities.
8. A work program for ATP 855P, which is also a part of the Nappamerri Trough, has not been agreed to as yet. Further, a Joint Operating Agreement for this permit, necessary prior to the commencement of work, is yet to be put in place.
9. Any shareholder who disposes of its shares now will not be entitled to any increase in the offer price that BPT, or a third party, may elect to make.
10. The ADE Board therefore continues to recommend that shareholders take no action at this time."


Now, if one was to read that announcement properly, they would notice that BPT can't withdraw their offer until the 22nd of December, and all they are saying, is only in order to instil fear on the remaining shareholders by telling them that their offer will be withdrawn and the sp would fall as a result. They simply can't (according to ADE's people and legal Representatives), withdraw that offer and it is only a scare tactics affair in order to shake the hands of the nervous nellies.

One more thing that people have failed to realise in this BPT offer, was that the offer was unconditional from the word go. Very very unusual if you ask me, and I have never experienced that part of it before in all of my years of investing.

So, what does that tell you ... Think about it and if you can't, ask me and I will tell you my views when I can afford the time to answer it.

As such, and with all of the above in consideration, there will be still plenty of time for our current Board to try and get the offer increased to a more acceptable level.

Most importantly though, anyone can see in that announcement that BPT had to advise the ADE Board of further development from the PEL 218 (Permian) drilling campaign and I am now beginning to wonder the sudden and out of the blue T/O offer that was quickly lobbed on the table as a result of it. The Board is currently reviewing the data supplied by BPT.

There is no way to disbelieve that BPT, seen that they have a majority control of ADE now, will immediately move, (Yes possibly even today), to remove the current board of ADE, but it is my opinion and past experience, which has now been confirmed by talking to someone in the ADE Board, that they can't remove the current Board until at least 60 days have gone by. IMO, they just can't simply shut it down altogether, and ASIC would go down their throat like a ton of bricks. Especially when the offer is still open. I am sure that they will try to scare us some more, but that is as far as they will be allowed to go.

That in turn would give plenty of time for our Management and Board to come up with something that may be of help to us in reaching a higher offer than the one we currently have in front of us. If the report from the IE will come out trump and in our favour, we would have plenty of leverage to put on BPT for a better offer.

So, I am hanging on to my shares, because for the life of me, I can't see that I will loose anything by holding for a little longer, while I can see that I may have plenty to gain from it.

Have to go now.

Regards