If the arabs always "overpay" then why are they so filthy rich and just keep getting more wealthy by the day? I think you fail to see the point that if they tried to buy $3.3m of shares (16.9m shares at 19.5c) (which is a whopping 25% of the tradable shares until next year) then there's no way in hell they're going to get them for under 23c. I doubt they'd have gotten that many for under 30c! We can clearly see, based on the volume traded so far, that a large portion of shares traded have been short term trades..
Getting 14.34m shares for $3.3m is pretty darn good in their point of view. They didn't run the risk of driving the price up and they got a substantial holding, whilst also getting the privilege to appoint someone they deemed fit to help improve their investments chances of success.
The arabs aren't stupid. They may appear to "overpay" at a glance, but when you look deeper, you can see there's a good reason for it. Now as for the Tanzanian business man, he will probably be a large holder of the SOGTL shares also, so I think he's hedging his bets on some out of country acreage along the rift, not just his own! Also a smart move.
I can only imagine what sort of offers (juicy premiums!) SWE will get when they start to roll out POIP (potential oil in place) numbers and the announcement of new licences...
SWE Price at posting:
22.5¢ Sentiment: LT Buy Disclosure: Held
