Hey Cheap, well. As Aries mentions, NSE may have (IMHO) indeed farmed out its most prospective acreage.
The other issue, is that the most likely bidder for NSE, is Magnum Hunter, who will not T/O NSE, when NSE is planning to raise $12 million, or over 1/3 of their current market cap, to pay for further development of their U.S assets, which Magnum, will be happy to re-acquire one day, via continued capital raisings that NSE undertakes. NSE will slowly wither away, as Magnum repeatedly takes up its full entitlements. Perhaps they will even use the 'Creep option'. I think when NSE first announced the Magnum Hunter deal way back, I said they would simply use NSEs money to do their bidding. I do not think anything has changed.
No-one else would bid, as Magnum already has a blocking stake. All that being said, if NSE were able to get a good farmout for all of its W.A acreage (other than Magnum Hunter), then I would have a different view, albiet, if the EFS keeps sucking all the capital out of the company, it just makes no sense to hold shares. Only large, well capitalised companies can make it big in U.S shale. In the boom, that was different. No more boom though.
I am sorry to be so negative, as I know there are some good people holding NSE shares. They proved me wrong in being able to get a good farmout for PEL 570, perhaps they will prove me wrong with their W.A assets.
NSE Price at posting:
8.0¢ Sentiment: None Disclosure: Not Held
STO Price at posting:
$12.78 Sentiment: Hold Disclosure: Not Held
DLS Price at posting:
$1.18 Sentiment: Buy Disclosure: Held
