It originally came from a thought that popped into my rational mind when Richard Cottee compared the Galilee Basin to Elixirs holdings in Mongolia.
EXR management have always been unashamed in their goal to shore up the resource, prove the scale and sell. This is what Cottee and Co did with the Queensland Gas Company. Neil Young has been working for almost ten years to make EXR the 'overnight' success it is currently enjoying.
My view was to buy the shares, stick with the strategic goal of management, and take the payday when the take over occurs. $6.82 was my back of the envelope price if EXR sells for the same price that QGC did.
The more research I've done, the more I believe the price could actually be a lot higher - but that's when my rational brain kicks in and says "wait for the contingent resource" - "wait to open up more sub-basins", "Wait till the gas is flowing".
EXR Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
