A New Idea

I noticed in the half yearly report, it said: “The group continues to look for further diversification as and where they make sense.” Source: ASX:AJL Appendix 4D and Half Yearly Report, https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02776584-2A1507070

ASX:AJL’s chairman Andrew Purcell’s other company ASX:MAY is in need of two things: 1) a rig, 2) a full crew to service that rig. Currently they are using Sherritt’s rig/crew (however I don’t believe this is sustainable).

ASX:MAY’s new discovery will require decades of drilling if they are going to get the P50 prospective resources out of the ground.

Your CEO has a background in oil and gas. ASX:MAY is drilling for oil/gas.

As a shareholder of ASX:MAY nothing would make me happier to see a collaboration of ASX:AJL and ASX:MAY.

I understand ASX:AJL is probably already restricted to fixed contracts and probably can’t leave without a penalty, but… if it was worth it, I know I would be willing as a shareholder to start paying my share of the expenses for ASX:AJL to start drilling.

Problems with this new idea:
1) AJL is probably stuck in the UK/Australia on contracts.
2) The idea is based on moving a rig + crew to Cuba long term.
3) maybe AJL don’t own a suitable rig to drill to 3000+ metres MD? The rig would also need to drill horizontal wells (directional drilling).

Benefits:
1) friendly customer
2) less restrictions and hostilities to oil/gas/drilling
3) faster development (less red tape).
4) possibly a project that might be “long term”. $$$$

This idea probably has already been thought of, and I wouldn’t be surprised if the two companies were already in discussions.

Thoughts?