As it turns out, if you put two loser companies together, the market is not all that impressed. Two negatives don't make a positive in this instance. Nobody seems interested and I am sure both shareholder groups are kinda, sorta, scratching their heads atm. Its just a strange combination for little upside (particularly for HOG). If you have free cash flow, why not just take a WI or NRI in a field in USA with that money (assuming the strategy now is you also want access to the USA oil & gas market)? Why would you "give" that cash to what is effectively an ASX shell with a development idea? Like I believe I posted before; you can get a direct WI or NRI and remain master of your own destiny (without the dilution). The board appears no longer to have any drive (not sure there was much to start with given what has happened over the past 3 years) and I question whether the current decision is motivated by common sense or simple "management fatigue". Again, this remains a difficult choice as the last thing HOG holders want is to keep the same guys in charge but by the same token you do not want to throw out the baby with the bathwater. My preferred solution would be: Install a new team, get a good WRI or NRI opportunity in the USA, possibly divest Ukraine if you can, but don't unnecessarily delete shareholders just because "management/board can't be bothered any longer". I (and I am sure many others also) could put together a good team who could do this and could do it well.
HOG Price at posting:
1.0¢ Sentiment: None Disclosure: Held
