itc valuations, page-13

Horsemin

If you go back over the threads from the past 6 mnths or so there has been quite a bit of talk over VPE as a possible suitor for an ITC takeover.

The general consensus from these threads is that VPE if they were to have a crack would go for a scrip and cash deal hence the need to raise capital.

The capital is also needed as they are drilling alot of holes for CSG and now another 9 wells with ITC and they now have 60% share so you are looking at 1.2mill a well so it does add up plus any other finishing costs etc.

My feeling is that they want to see the 3d fully first before any decision. If they want a cash deal they will need to sell their CSG assets first. This will happen but not for some time so do they wait and risk paying much more for ITC or do it now. It makes sense to have a crack now while the sp is low accumulate some shares and then announce it.

ITC will go up as things are proven up , earnings increase etc. If the poo goes up this year aw well then ITC then turns expensive.

If VPE are really going to have crack to me it needs to be sooner rather than later. Each day that goes by the less chance IMO of takeover coming from there.