Just as I suspected; Pathfinder is just a wheeler/dealer which has sold NSE what are effectively options on PEL 570 and the EFS in the USA.
This company (Pathfinder/outback - they're both subs of the selling company) has signed a farm-in JV with AQO without any capability of fulfilling it and has sold the rights to the farm-in for a few million quid + 45m shares in NSE (at rock bottom prices!).
NSE are the worst negotiators in the Australian unconventional sector.
They've given up 1/4 of the company, half their cash and then taking on debt for:
- An international play they know little to nothing about - Cooper Basin (good asset) but still 12-18 months from drilling as they still need to do seismic in 2014.
I don't know what to say about these guys. Perhaps I'm missing something here, but I just don't see ANY sense in this at all.
NSE Price at posting:
11.5¢ Sentiment: None Disclosure: Not Held