I think you re wrong to assume the company should be worth 20c and I don t really see why Transcor would have accepted such an inflated price.
Institutional investors are quite sophisticated and have done their dd. They can see the company with fresh eyes as opposed to long terms shareholders who have been through very volatile times. The co operates in one of the region with the higher gas price in the world and looking at their contingent resources you would just need to convert a very small fraction of it to even 3P to get a multiple of the current valuation of 45c. On top of that the PSA should provide cash flow to the company.
I agree with you that they need to hire experienced executives in the oil and gas industry and I d love to see some acquisitions/partnerships in other countries in Europe.
EPG Price at posting:
45.0¢ Sentiment: Buy Disclosure: Held
