I have problem that haa worried me for ages and one which someone may be able to help me with.
In their todays announcement they state that:
"The Company advises that negotiations for the sale of the assets are continuing and the formal sale process has been extended to ensure delivery of the best value outcome for shareholders."
If they want to get the best value outcome then why are the trying to sell before the prove up the five sole risk multilateral wells that they have spent millions of dollars drilling at Mungi?
I understand that the have problems with coal fines in one of these wells and a problem with a pump in another but, despite the fact that they started dewatering the last two in the middle of last year, I am not aware that any decent and consistant flow rates have been reported.
Surely this cannot be a good bargaining position particularly, if they can be proved up, the additional cost should be a small fraction of the cost of drilling.
MPO Price at posting:
59.0¢ Sentiment: None Disclosure: Not Held