Hi Inverted, I'm with you on thinking that this was an...

Hi Inverted,

I'm with you on thinking that this was an opportunity OGOG would use to increase its position in NZO.

Either the plan didn't work or it was never the plan? (you were right on the money re the OGOG increase being 1%)

In the initial announcement re the raising there were two points that I thought were interesting.

Firstly NZO moving to a full ASX listing. This would appear a logical first step if OGOG wanted to consolidate its Australian interests.

Secondly that the raising was in part to allow NZO to support CUE via an intercompany loan rather than CUE doing its own CR. CUE should have enough cash to meet its Central Petroleum commitments but if it requires some extra $$ NZO is ready to support it.

OG obviously believes in Amadeus and is prepared to fund it.

So why then is it not finishing the job and taking CUE and NZO over?

The only reasons I can think of are

1. its leaves some of the exploration and development risk with the remaining CUE/NZO shareholders- doesn't really make sense to me as OG has the majority exposure

2. OG doesn't think it can acheive control at what they feel is fair value

If OG have decided to execute their Amadeus, and other expansion. strategies while leaving the existing SH structures in place it could deliver real benefits to all SH.

Do you think that is a possible strategy? Or was the rights issue just a fizzer for them?