palo pinto assets

as per announcement yesterday
AVD has mopped up minority interests in its Palo Pinto assets as well as Motherlode 1, AVD now holds 100% of the assets and imo this makes for a much tidier divestment. Nice neat package as per the tender documents.

The impending sale of these assets will see a full cycle of the business model and will demonstrate the profitable acquisition - value add and disposal cycle

There has been much media attention focused on the woes of the US property market going down the toilet, but there is one type of property that is booming oil and gas

It is quit simplistic but essentially AVD is a real estate play. That imo is what is widely misunderstood about this company.
In an environment of rising energy prices the true value of these assets lies not so much in production (this is bread and butter) but it lies in the companies ability to value add and profitably divest the assets allowing them to then leverage up and repeat the cycle. In the process of value adding and producing the assets essentially return funds already outlayed for acquisition and development the real 'cream' is only realised on divestment.
This is the AVD business model and we are about to see the proof.
If you are prepared to take a bullish view on o & g commodity prices then it makes sense to take the same view with respect to oil and gas assets/ real estate.

With regards to recent comments on capital raisings it just goes to show some people are never satisfied and no matter what course of action the company takes there will always be criticism. Take a look around this is a global credit crunch. In the midst of this crisis AVD has managed to raise the funds necessary to continue its operations with the support of directors and major shareholders. IMO there will not be any issue with any "overhang" as a large portion of the stock sits in long term hands.

Lassatter