Talbot Group Holdings buys five per cent stakeCameron...

Talbot Group Holdings buys five per cent stake

Cameron England

October 05, 2007

TALBOT Group Holdings has snapped up a 5 per cent stake in Innamincka Petroleum, in a move which could presage a tussle for ownership of the company.

Innamincka announced on Monday it had found a Cooper Basin oil reservoir containing about 120 million barrels of oil.

While it is yet to be seen how much of that oil is recoverable, the stock jumped 283 per cent that day to close at $1.495.

Even a 10 per cent recovery would be worth more than $1 billion at current oil prices.

The Innamincka stock price has since settled, opening at $1.17 yesterday morning, but a substantial holder notice lodged with the Australian Securities Exchange showed Brisbane investment house Talbot Group Holdings, backed by coal magnate Ken Talbot, as a key buyer.

Talbot Group has bought 5 per cent of Innamincka -- the exact amount which compels it to declare its interest -- picking up 8.02 million shares for $12.19 million, at an average price of $1.52 in the three days after the announcement was made.

Innamincka shares jumped in response, closing 18 per cent, or 20.5c higher at $1.335 yesterday.

Innamincka managing director Ross Wecker said the Talbot Group had not been in contact with the company.

"I've had calls obviously from other big groups, looking at potential participation and all that sort of good stuff," he said. "You always get that sort of thing when an announcement goes out. But I can't say we've had anyone come in and say, 'Hey Rosco, we want a major equity'."

Talbot Group has shown increasing interest in energy over the past two years, with substantial investments in South Australian uranium explorers Marathon Resources and Southern Gold. It also owns 19.9 per cent of Perth-based iron ore explorer, and takeover target, Sundance Resources.

Mr Talbot and related entities also own 27.2 per cent of the company he founded, Macarthur Coal.

Mr Talbot is currently facing charges of paying secret commissions of almost $300,000 over three years to former Queensland cabinet minister Gordon Nuttall.

The Talbot Group did not return calls yesterday.

Adelaide oil company Santos, which along with Beach Petroleum controls most of the Cooper Basin's oil supplies, would not comment yesterday on whether it was looking at Innamincka.

http://www.news.com.au/heraldsun/story/0,21985,22532720-664,00.html