Magnum were interested in Ambassador before NSE. In many ways, the NSE deal was designed to get into AQO cheaply, so it might be Magnum trying to take the whole thing in one bite (rather than the slower route through NSE farmin).I thought something was up when we had a large buying from a fund domiciled in the Caymans. Many US oilers would route funds through there.
I think 50 cents is highly reasonably. AQO listed at 25 cents (from memory) and the ground has only got more valuable since with the emergence of shale sector in OZ.
The NSE/Magnum deal valued AQO at 27 cents exclusive of cash and other assets. Lets remember, that's a farm-in deal. AQO accepted a lower price (ie. see through price on Cooper asset) because they are getting cash injected to prove up the acreage which might, down the road be worth, hundreds of millions. If someone wants to buy the whole kit and caboodle, $50 million is not unreasonably because shareholders would be giving up the entire upside of the PEL 570. Also, original subscribers to the AQO float, including management, would want a handsome profit on their initial investment.
Then again, it might not be a takeover, but the buying action, and surprise trading halt, would suggest that the announcement will pertain to something related to control of AQO.
AQO Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
