Charles Taylor Group Plc V.MQL

RE:RE:RE:RE:RE:RE:Takeover of Paliser is in the cards, for shares

[nlr2]

I would not be very impressed if they bought Palliser. They have spent all this time and effort putting together a material land posistion at Michichi, acquiring infrastructure and figuring out how best to develop the play. Now at the moment when they actually have the financial resources to develop a potential company making play to turnaway would be an awful decision. I get the point of having the Teague asset, diversification, quick development and quick return on capital. Michichi is the thing that can make this into a major growth story if they can successfully develop it. Maybe in a year if Michichi is proven and the share price was much higher I could see them adding Palliser, but right now it makes little sense. 

Palliser has never impressed me as they have a fairly limited land posistion in the heavy oil window and the High Volume Lift seems to be less effective then originally advertised. Management needs to focus on one thing and figure out how to do it well. They cannot afford to split their focus, even for a super cheap asset.