Dear raynkaye,
Yes it is the same as the old bid with various conditions removed.
Its worst feature is that the offer is at a discount to current share prices. At todays price for OIP of 7.5cps and OXXs price of 40cps, the ratio is 5.3 OIP shares for one OXX share, not 6.
But the bid does provide the other outcomes listed in my first email.
And it does give some additional benefits as listed in the Bidders Statement as follows:
Benefits to Orion Shareholders
The Offer provides significant benefits for Orion Shareholders. In particular, it gives eligible Orion
Shareholders the opportunity to become a shareholder in a larger group with a market capitalisation of
approximately $65 million (based on the closing price of Octanex Shares on ASX on 31 March 2010)
which offers:
a more diverse and prospective asset base;
superior financial capacity and an enhanced balance sheet;
an experienced management team with a record of success in the oil and gas sector;
potentially greater liquidity in the securities of a larger and financially stronger company; and
exposure to the potential long term benefits of an investment in Octanex Shares.
The closing date for acceptance is 1st June and before then both OIP and OXX will have progress reports for us to consider.
OIP (Progress Report 27/4)
OIP will have the results of the Toenda-1 ST1 exploration well in PEL 6 currently running in the hole after a bit change, currently drilling at a measured depth of 724m RT.
OXX SUMMARY (OXX Investor Presentation)
OMV/ENI, in December 2009 committed to the drilling of a well in one of the four Exmouth Plateau permits. OMV soon to acquire a very large 3D seismic survey over the main leads identified so far. Drilling expected in Q2 2011.
Octanex will be a direct participant in very large scale offshore exploration targeting giant gas fields and fully carried through initial drilling.
Cornea 3 successfully confirmed the existence of a live oil column. Octanex is now in an excellent position to be a material participant in a future oil field development.
Winchester data processing now all but complete and the results are encouraging. Once detailed mapping and interpretation has been completed, an active farmout campaign will be commenced.
The NZ permit is oil prone and has low obligations. Excellent potential for Octanex to be able to retain a large interest through future drilling.
Octanex has a strong cash position and low forward commitments.
So there is no need to rush into rejecting or accepting the bid from OXX at this time. Let's consider it carefully over the next month.
Regards
Fairgopat
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