A: Arguably, the market forced Origin into the capital raise – at a heavily discounted price of $4.00 – so it’s not surprising that the institutional part of the issue went so well and the shares are now trading around $6.40. Of course, a rally in the oil price has also helped.

What to do? Well, you can sell your rights (issued on a 4 for 7 basis) which are currently trading under ASX stock code ORGR until Monday 19 October (last day of trading), or take up the rights by Monday 26 October. If you take no action, then your rights will effectively be auctioned to the institutional market and any premium over $4.00 will be rebated to you.

Although I think there is some value in Origin for the long term holder, my sense is that oil prices won’t rebound quickly and that the current rights premium (of approximately $2.40) looks pretty attractive. I also can’t say that Management has covered itself in glory – so hence my lack of short term enthusiasm.