HMMMThe takeover stuff again. I think there is a combo of...

HMMM

The takeover stuff again. I think there is a combo of reasons why they took the stake.

1. Primarily at some point they do want ITC and their CB assets.

2. I agree that not always do you take a stake for a takeover but there is many abnormals in this transaction to not think that. Many are listed here.

3. Blocking stake - it appears that our mate be right here for now . There were rumours of other players and yes maybe VPE got wind and so protected their ground.

4. Originally I felt that one option for VPE would be to split in two and they would then go for 100% of the fairway. I don;t think that now especially as they bought the PEL's north of our fairway. If they were looking to exit the oil they wouldn;t be buying more ground. I may be wrong and haven;t cheked dates but did that occur under the new management.

5. VPE buying the PEL's shows they want the oil and reinforces my original thought I jave discussed and that is to divest the CSG assets. 2 problems here. CSG is now not the flavour of the month it was and the certfication process is taking a while and out of the direct control of VPE and think this is frustrating them. Certification was supposed to be done by now or at least in part but they are still waiting therefore probably not big enough yet to sell off.

6. Because of the delays is why I think we have not seen a full blown takeover attempt. New management may have had something to do with it. If not I do not understand the aggressiveness of the buying when it did occur. They could have got their stake considerably cheaper.

7. Eddie will sell for the right price. They know what they are sitting on and would be surprised if Eddie would let go south of 15c. ITC want the development to progress.

Its getting late but will add more thoughts when I am awake.