Buru is highly unlikely to take over OBL, certainly no where near 10c. Why would they pay $70M for something they paid the equivalent of $7M for based on the original deal with Backreef and OBL themselves sold for the equivalent of $7M to OXX? It's completely fanciful talk.
If anyone wants a fact based look at the situation, When Mitsubishi farmed in at $154M for 50% of Buru's acreage Buru's SP spiked from 25c to 39c (lowest to highest peak, it didn't hold 39c it settled back down). When Conoco farmed in at $109M for 75% of NSE's acreage the SP went from 19c to 36c (lowest to highest peak, but NSE stabilised from there and eventually grew from that base).
So Buru went up 56% on farm in and NSE went up 89.5% on farm in. If you take an average of that, 72.75% it's probably a pretty good guide for what a farm in would do... ie take OBL from 2c to 3.5c. But those are only historical facts. Could go up a more or less than that, but I'd be taking those two price movements in next door neighbours as serious guides for the details and timing of any potential deal.
OBL Price at posting:
1.9¢ Sentiment: None Disclosure: Not Held
