they're back

Orion Petroleum (OIP) 4.3c; Molopo Energy (MPO) 66.5c

THEY'RE back! After being pitched from the Molopo Energy board by a cabal of high-flying individuals, Stephen Mitchell and David Hobday are back with a proposed backdoor listing via this cash-rich but dormant vehicle.

Subject to Orion holders' assent, the duo's Petrel Energy proposes to list with an issue of 115 million Orion shares, leaving them with 43 per cent of the engorged group. The initial target of Orion (to be renamed Petrel) is an emerging shale gas development on Texas's Barnett shale, bought to the table by Petrel.

In February Mitchell was pitched as chief executive in a board coup set up by property developer Max Beck and other deep-pocketed challengers including rag trader Boris Liberman and pokies king Bruce Mathieson. Despite shale oil and gas putting the S into sexy, Molopo shares have plunged 40 per cent since.

Given the lack of downside, we're happy to rate Orion a spec buy. We say the same of Molopo as it tries to flog its coal-seam gas assets in Queensland. Given their proximity to Gladstone-based LNG projects, that's like erecting a beer tent at the Bathurst 1000.theaustralian.com.au