Oil Search- the rise and rise- 90 times your investment and still rising

In 1986 I put a proposal for a takeover Oil Search to two businessman. One was Alan Hawkins of Equitycorp, the other to Laurie Connell of Paragon Resources / Rothwells Merchant Bank.

Hawkins told me he was over extended in his holding of 5% in BHP- but thanked me for the proposal.

Laurie Connell and his MD of Paragon Stan Lewis jumped at the deal. Oil Search at the time had a market capitalisation of around $120m.

My plan was for a complete takeover. Connell never went that far- he simply purchased a big chunk and sold out to Robert Holmes a Court paying me a percentage of the profits.

I was 25 at the time and it was still a good deal. But looking at Oil Search now lets look at what a 1986 investment would look like today.

10% of Oil Search in 1986 would cost $12m- today it would be worth $920m
1% of Oil Search 1986 would cost $1.2m- today it would be worth $90m
.1% would then cost $120,000 and today be worth $9m
.01% would then cost $12,000 and today be worth $900,000

Oil Search today- May 10th 2012 Market Cap $9.28billion