Smorgons has bought up some shares in AQO as a precautionary measure. Precautionary to ensure that they together with Tino and Kleo Hatziliadis have greater influence over the future of AQO.
They know AQO is valuable, but unrest over the recent share price has caused a potential ganging up by other minority holders in AQO to flog AQO off to another player (eg Beach Energy) for say about 25c per share.
Smorgons appears to be in bed with NSE powerbrokers.
Tino and Kleo are not looking to pillage AQO. They don't need the dollars. They are more interested in self-actualisation. For example, through creating some history/memory of the role they play in making unconventional gas in the Cooper become a commercial goer. Hence the continuing interest in drawing on Magnum Hunter type expertise.
Although I suspect there is tension between what Tino and Kleo would accept for a take over of AQO versus their self-actualisation interest. I fear 25c just doesn't do it for them (for them to move on and self actualise elsewhere/otherwise).
The scale and quality of the resource in the AQO lease means that the 48% that AQO will hold in PEL570 post-the-deal means it will still be worth LOTS as the technical barriers to commercial returns are surmounted.
Tino and Kleo will not do a deal that threatens the value of AQO into the future. AQO does not have its back to the wall in terms of timing under its lease commitments. Tino and Kleo have too many of their own $ invested.
At the same time pressure builds in the supply chain to the Gladstone gas plants. And the Aust dollar is falling. Not to mention far less environmental sensitive, existing infrastructure, and leveraging off technical advances made by other Cooper players etc.
Tino is active in an advisory/consultation capacity within the SA Govt. Holden etc closing. New businesses is needed to boost SA economy. SA Govt wants the Cooper basin blown wide open as a commercial gas resource (and employer).
AQO Price at posting:
16.0¢ Sentiment: None Disclosure: Held
