Let me throw this into the ring. Metgasco has copped heaps in NSW. They have permits in northern NSW, and the Greenies have been giving MEL a hard time. Now the NSW govt has taken the political decision to withdraw their permit, and suspend their drilling activities. They have also referred the original grant of the permit to MEL back in 2008, to ICAC. This referral is based on connections of the Chariman of ERM to people who are being investigated by ICAC already. SO MEL is caught in a political trap.
The point of this, is that for about the last 2yrs, MEL has been looking for alternative investments in the O&G space. ERM has about 12.7% of MEL and is by far biggest s/h.
MEL has $13.4m cash.
That represents about 3c cash per MEL share. MEL is currently trading at 4.9c p/s.
Would it be feasible to merge the two companies.
Marry the assets operating business of EGO with the cash of MEL.
You have the common major s/h and mentor in ERM.
The merger could be on the basis of say NTA or whatever.
But both companies are in dire need of what the other company possesses!
And ERM are the common denominator!
Just a thought cheers
How about
EGO Price at posting:
0.7¢ Sentiment: None Disclosure: Held
