Caza Oil & Gas gains a big new shareholder - GLG
I am a big fan of Caza Oil & Gas Inc (LON:CAZA), this under-valued US shale oil & gas play, which happens to have a primary listing here in the UK (OTC listing in the US).
There have been some excellent articles on Caza Oil & Gas Inc (LON:CAZA), most notably by Malcolm Graham-Wood (see Malcy's Blog) and also on seekingalpha.com pointing to the huge relative under-valuation of this junior oil company relative to other US shale oil & gas exploration stocks. So I will point you to these sources of information on Caza's various exploration and production assets, rather than going into detail here myself.
Catalyst: Post-Placing, GLG Partners now have 8.4%
The news here is that Caza recently completed a placing of shares for about $10m in order to fund ongoing exploration opportunities, with the shares (32.7m; about 15% of outstanding shares) priced at 18p, at the time a tiny 4.3% discount to the prevailing share price.
We now discover on today's RNS that the hedge fund GLG Partners (owned by the listed Man (LON:EMG) Man Group) have snapped up an 8.4% stake in Caza, worth over £3m.
To me, this sounds like a huge vote of confidence in Caza's prospects - don't forget that founders/management have 20% of the shares as well, so they are very well aligned with shareholders' interests.
All in all, an interesting development and it is no surprise to see the shares up over 3% this morning to 19.4p.
I expect further upside ahead as we hear more of their exploration and production results.
