Yes, but NSE has much better advantage than paying $50m now for having the 47.50% of PEL570.
DLS or MHR are now happy to pay nearly $50m for being fee carried. (we don't know if it will be script plus cash or only cash yet). We should consider that NSE will pay less money for 52.50% of PEL570 than what DLS or MHR want to pay for 47.50%.
NSE haven’t even paid it yet. NSE will spend $42m by over permit life, any spend above this in line with equity.
NSE is not paying $42m for the permit now and then spending another $42m. Spending $42m over the life of permit is not much for owning 52.5% of this tenement as it is a very low risk area which we know from Drillsearch’s offer.
$42m is going to be spent for creating the value. NSE only paid $1.6 cash and gave 15m NSE shares to OEH. NSE will also pay $1m to OEH in 10 months. That’s all.
NSE Price at posting:
16.0¢ Sentiment: None Disclosure: Not Held
AQO Price at posting:
32.5¢ Sentiment: None Disclosure: Not Held
DLS Price at posting:
$1.52 Sentiment: Buy Disclosure: Held