DLS is late for the move. MHR will not give up easily, page-16

Cheapprice, I would be very happy if Magnum offer $0.50 equivalent for their shares. DLS would make a couple of million and be done with it, but I just don't see that happening now that AQO management have accepted the bid.

Barney, I am not against the acquisition, as I originally posted, DLS was getting a good deal (script only) for some acreage that will not be drilled until the end of next year at the earliest. Then, NSE, who farmed into the rest of the block is hardly an inspiring partner. They have totally failed in their Canning Basin venture after almost a decade of involvement, so they threw up their hands and 'bought' Magnums unwanted acreage in the U.S. NSE have about $13 million in cash, and have already borrowed $8 to further develop their U.S shale acreage. For more detail take a look at the NSE threads, particularly Cmonaussie and Anatols posts.
Suffice to say, NSE don't have $42.5 million to pay for the work they have to complete, so while DLS will be free carried, its not a sure thing that NSE will have the funds to do it. If NSE do eventually fund all the permits work commitments, then yes, DLS is probably still getting a good deal. There are also other advantages that DLS will get by having more acreage, but I have already talked about that in regards to the Acer acquisition (state agreement and acreage relinquishments).

I look at the AQO in a different way, more an opportunity cost sort of view. i.e. I would be much happier if DLS put equivalent cost of AQO into developing the Flax/Juniper field. Which IMO is much more valuable than AQOs acreage. However, I can understand that DLS is looking long term in regards to the wet gas potential. I would simply prefer DLS to focus on what they have, and actually develop some of their excellent projects, instead of just talk about them in presentations.

Anatol, I have to disagree with you about DLS being 'late' to do the T/O, they have clearly outmanoeuvred Magnum to get the initial 20% holding, in fact I think Magnum had no intention of bidding for AQO for quite a while...(as they have NSE by the balls anyway, with 52.5% of the tenement) so AQO holders did not want to wait forever. Good luck to all involved.