The ASX has a long history of undervaluing oil/gas shares. Australian mug investors put cash into smaller oil/gas companies prove up reserves . Often when they reach the stage of moving towards production bigger companies mostly Asian snap them up at bargain prices. We can learn a lot from history. Looking back to 1996 I find the situation for the oil/gas sector very similar to now. The oil/gas sector had been neglected for years but POO started to move up quite sharply , which started renewed interest in the sector. The sharks started to move in on undervalued oil/gas shares and why not ? They could take out oil/gas companies with proven reserves for less than the cost of a well than might be a duster. So many T/O happened that Macquarie Equities stated "the oil/gas sector has been "ripped up"and there is not much left" A few of the T/O were Command Pet(indian interests) UK based Premier Oil Plc snapped up DiscoveryPet,UK Clyde Pet took out Crusader Pet and US based giant Mobil snared Ampolex ,STO picked up MIM 's oil gas interests to name a few. Back to now we find the many oil/gas with proven reserves very undervalued while POO is moving up sharply, as yet very little T/O activity . So the formula is now in position for interest to return to the oil/gas sector. There are many way undervalued oil/gas companies on the ASX who could be snapped up. Two minnows involved with mega projects which will be big baggers if they work out are HHR and MAY. If the big boys are not watching these two as they moved towards development I would be amazed.
HHR Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
(20min delay)