Every company has their own strategy based on percieved prospectivity of a prospect/area and the reality of what they can fund.
In this case I think all 3 parties have made the right decision for them.
MHL - gets some immediate drillable prospects and some lift to their activities in a proven area. A successful well may be modest but it will get them started on the bopd treadmill.
VicPet - gets a free ride on a well or two in an area that is prospective but not core to the company like the Western Margin or CBM. The prospects have long been sitting on the shelf so they may gain some reserves/production without defocusing their core.
ITC - needed to focus all their energy and cash into their best area which so far is delievering the goods. To try and save all their dirt, when funds were low even for the best area, would not have been sound business. Even if MHL makes a hit, most people in the know would still say ITC made the right decision.
It is the same as in share trading 'don't fall in love with the stock/prospect, sensible decisions based on the data to hand at the time'
ITC Price at posting:
5.3¢ Sentiment: None Disclosure: Held
