VPE know the value of ITC's oil portfolio and likewise ITC know the value of VPE's oil portfolio. With the prices of both ITC and VPE so low a 10% blocking stake makes sense to stave off any unwanted predator having a crack at ITC.
As I have said before I am picking a VPE takeover of ITC using cash and scrip when the time is right. I don't think it would make sense at the moment as VPE is completely undervalued. That should improve during the year as their drilling program ( 2 rigs ) gets into action. ( Plus of course further progress will be made on their CSG ).
I certainly am NOT picking a takeover of VPE's oil assets by ITC. Out of the question as far as I am concerned. VPE has a great program lined up for the Cooper Basin and it wants to complete it.
Great to meet with you at the Hong Kong Football Club. That place must be worth a fortune.
ps Don't forget that Robert Bryan holds 10 million ITC. A very savvy individual.( ex QGC and actually appointed Cottee... and we know what Cottee did for QGC.)
Even in today's economic climate ITC rates as a very strong buy.
ITC Price at posting:
5.2¢ Sentiment: Buy Disclosure: Held
