Nice try Cabbie, but the dilution is less than 7% of DLS. DLS gains another very prospective part of the basin, which has already got 3D seismic over it (done by DLS). DLS acquisition also comes with $42.5 million in free carry. Depending on what value you give to the actual acreage, as the majority of PEL 570 is on the border of the basin, the 'core' is approx 800sq kilometres, or 200k acres. DLS is getting 47.5% of that or 95k. They are paying approx $570 per acre, which is not cheap! So AQO holders have done well considering they only have 1 bloody asset. Then again, if you also include the free carry of $42.5 million in the equation, the value for DLS becomes more pronounced.
I suppose Cabbie you have spoken to the Top20 holders about their plans??
AQO Price at posting:
33.0¢ Sentiment: None Disclosure: Not Held
