Goodaye, JBP and Hotwolf - you might be interested in the following article. I was not the only one wearing a "tin hat".
It seems that other people more influential than I, have been looking at the issue of the BPT trading in DLS shares. Whilst BPT categorically denied any insider trading, that is to be expected. I am sure the directors of BPT acted wholly within the law.
The point is, BPT had a real conflict of interest as Operator, and simply should have waited until the well was P&A before it traded in the shares of its JV partner.
BPT was being clever.
The article is a very good outcome for DLS s/h. 1. BPT have stated to SMH that they have no intention of selling more DLS shares! BPT have about 375m DLS shares remaining - so the overhang would have been huge. 2. The article might focus BPT attention on better Corp Governance. The fact that BPT had to get legal advice about selling those DLS shares, seems to say that BPT knew it was "touch and go" re legality.
cheers ******************************************
ex SMH 1/9/2009
Beach abandons well
The summer-loving oil producer Beach Petroleum has pooh-poohed suggestions there was anything untoward about it selling down its recently acquired stake in Drillsearch Energy, just ahead of some bad news from its former takeover target.
Less than two weeks after closing its takeover bid for Drillsearch, Beach last Wednesday sold down its newly acquired 22.8 per cent stake in the company to 21.5 per cent.
This was just a day before both companies disclosed to the market that one of their jointly owned wells (Marino-1) had ''no hydrocarbon shows''. Beach sold 19 million shares at 9.5 cents. They slumped 12.5 per cent to 7.7 cents on the bad news.
It has been alleged Beach may have traded on inside information, given it has a 40 per cent stake in the oil-free well. But Beach has insisted there was nothing shady, which it said was an attempt to recoup some of the costs of its failed takeover.
''Those shares were sold well before the company was in receipt of any material information whatsoever in relation to that oil well,'' explained a company spokesman.
''It was done with the full approval of the board and in full consultation with … lawyers.''
As for nasty allegations Beach may have traded with some inside information, the spokesman said: ''It was done entirely above board, so the company has absolutely nothing to apologise for.''
Yesterday, Drillsearch announced the well had been plugged and abandoned. Beach also said it had no plans to sell more Drillsearch shares
DLS Price at posting:
7.0¢ Sentiment: None Disclosure: Held
