vpe in general., page-5

I believe the management has been looking for potential buyers to buy out all of their scattered US assets as a whole. Obviously they have not found a buyer with the right price yet.

Without coming acroos as ramping up Strike (I hold a large chunk of both VPE and STX), here's their latest qtrly report - http://aspect.comsec.com.au/asxdata/20080725/pdf/00863182.pdf

• Oil and gas revenue for the quarter was $9.22 million, up 165% on the previous quarter;
• Gas production was up 88% for the quarter and oil condensate production increased by 129%;
• 2008/09 revenues now targeting between $50-55 million - up from previously reported range of $35-40 million.

That's the kind of growth I expect from good assets. Obviously, there's a stroke of luck involved in making such a discovery, but they still had to put themselves into that position.

I am still holding VPE for two reasons - Western Margin Oil play as well as their CSG play. It is very likely that they can prove up quite a significant amount of oil accumulations around Growler/Wirraway/Warhawk, and the market has assigned next to no value for their CSG asset - which is on the verge of establishing some 300BCF of 3P reserves (Don Juan with Bow and ATP574P/PL171 with QGC).

Oh, of course, there's a third reason - corporate play. If the market is willing to pay 50mn for RPM (which has less than half of VPE's oil assets as well as CSG net acreage), the implied takeover value for VPE should be north of 150mn.

It's time will come :o)

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