Stockmarket Ramblings - VPE & VPEO on the move

With the recent increases in the price of oil reaching US$135.00 per barrel, it is not surprising that Victoria Petroleum Shares and Options have traded at a higher price. This company is producing oil and coal seam gas in moderate amounts from its Australian wells. Interestingly it was announced that the ANZ Banking Group have now become a substantial holder of shares in VPE. Further interest has been from a British energy company B G Group whose recent investment in Queensland Gas Company has preceded QGC's acquisition of 7.13% of VPE. The recent increase in share price and activity in VPE's shares has prompted an enquiry from the ASX. VPE has 254.8 million shares on issue together with 61.8 million options exercisable at $0.25 by Jan 2010. The company has a number of joint venture operations in progress which are likely to make it cash flow positive within the next twelve months. It has been substantially undervalued by the market. It would not be surprising to see the price of the fully paid shares approach $0.90, within the next twelve to eighteen months, following a few more successful wells being drilled on their permits. VPE has a success rate of approximatley 50% at present.