Although we can't be sure just what is behind the board changes and specifically whether corporate action is likely here are a few drivers over coming months:
1) Corporate action. If a takeover by ESG then there's significant upside particularly if its after PEL 6 drilling. Could also be a merger with another company although I would be surprised if ESG would approve that.
2) PEL 6 CSG drilling. Potential is large .. take a look at the size of the prospects (also the newly defined prospects in PELs 427/455/6). Substantial upside even at OIP's residual 25% post-farmin.
3) A JV partner for drilling the 30m barrel potential oil target Toenda, or a decision to drill it alone. Willaroo drilled nearby had oil shows. ANY discovery would be worth multiples of the current share price .. although it has to be remembered that the chances of success are not necessarily high.
All in all the potential upside is somewhere between 1 and 4 multiples of the current share price .... worth siting back and watching it unfold I reckon.
H
OIP Price at posting:
14.5¢ Sentiment: LT Buy Disclosure: Held
