cant you see it

Tap has $105MM in the bank.

The ex-Alinta managers aren't fools. The company looks cheap and is ripe for a LBO - why:

1. Debt free, load of cash
2. Excellent acreage. The amulet discovery only needs Totem to come in and they have another field that can produce. They also have 25% of WA-351-P which could be the key.
3. Australian production - Woollybut & Harriet. Harriet gas is good for 10 more years. Woollybut workover will boost production.
4. Production can be hedged and the company can be loaded with dept and refloated
5. $$$ Franking credits in the bank

I believe the ex-Alinta folk will get the co with a reasonable offer, fund it through existing cash and loading the balance sheet up with debt. Hold the co for 1 or 2 more years then walk away with 20-30 mil each. These guys would have seen numerous deals from mac Bank and others inv bankers. The way the market is it isn't exactly hard to get a bit of finance to do this if you have some credibility.

Just my thoughts - DYOR