Molopo has a proven track record of identifying and purchasing oil and gas assets cheaply, successfully appraising them and selling them at large profits. Recently, the Company sold several non-core assets for approximately $125 million, compared with a total cost of only $18 million, thereby generating significant value for shareholders. The assets sold were Gloucester (New South Wales), Liulin (China) and Clarence Moreton (New South Wales).)""
Acorn,
That comes from their own Announcement.
Now tell me. Are we solely an exploration company, or are we a company that is going to develop what we find to a stage of production with the view of creating shareholder's wealth and possibly even distributing Fully Franked Dividends to the long faithfull shareholders while appreciating the shares price ?.
For, if we are only an exploration company, and sell the assests as they reach an interesting and rewarding stage/level, we, the Shareholders, will never get anything out of it, while the profits will go towards searching for new ventures, and pots of gold at the end of the rainbows.
Look at what happened to AJL with their sale of the Gloucester CSG tenements. Their sp dived just the same as for MPO, and even worse. Good producing Assets are hard to find and once you sell them, you have nothing to show anymore and you'll have to go and look for some more in the hope of finding some and proving them.
As for the thereby generating significant value for shareholders., copied from above, what did we get out of those sales beside a hope of getting some special dividends that never came to fruition. And now they are proposing to do the same thing all over again with Bakken/Spearfish when we are reaching an ongoing revenue level from these opeartions. Don't forget that we spent $100million dollars so far on that, and now they want to dispose of another income producing asset.
What's in it for us is the main question. More of the same ?
IMHO, if you want to sell something, don't sell what is returning you a good ongoing income. Sell what is doing nothing for you, and costing you money at the same time while it is sitting idle.
Buddy
MPO Price at posting:
$1.00 Sentiment: None Disclosure: Held
