MRO has just released its 1st qtr results. It mentions that it has been busy buying up acreage in Karnes and Atascosa counties (AUT's Excelsior acreage is in Atascosa). They say that they paid $767m for 20,000 (net) acres (WI greater than 90%) which includes 13 producing wells and 9 drilled wells awaiting completion. They also say that they expect to pay $27,000/acre for UNdeveloped acreage (they paid an average of $38,350/acre for the drilled acreage).
This seems to support AUT's statement that there are opportunities out there.
I don't think that AUT's bid will develop into an unseemly fight and my reading of AUT's statement is that they'll probably accept the market's answer to their open offer. EKA provides an investment in the jewel in the crown, Sugarloaf, but I think that the uncertainty over the plans and means to develop Brioche have been weighing on the share price. That, I feel, is the key. If EKA's board can provide a convincing plan in the Target Statement, AUT may well be denied control.
Good luck all.
EKA Price at posting:
49.0¢ Sentiment: None Disclosure: Not Held
