I have not commented for a loooong time on NSE.I no longer have...

I have not commented for a loooong time on NSE.
I no longer have any shares, as I simply decided to put all my eggs in one basket with the other Canning company.

Anyway.
Very interesting deal, I am not going to pass judgement, but what I have done is a very basic run down of what NSE is spending and what they need to do over the next 12 months. This is a huge transaction for a company with such a small market cap.

Current Cash as of Sept 2013 - $37.3 million (it will obviously be less than that after 2 months).

The Deal -
Stage 1 & 2 payments total - $20.6 million
4 U.S wells to be drilled - $28 million
Cooper Basin 500km 3D seismic - $10-15 million (approx)
Merlinleigh well - $8-10 million (approx)
1-2 wells in Southern Canning - $ unknown... but millions.
Admin - $2 million

Grand total - $68.6 min // $75.6 max
(plus unknown for 2 Canning wells)

With their newly acquired production of 300-400 barrels at $95 you get $10.4 min to $13.8 max in revenue... before costs (I have to leave out any successes that NSE get with the wells for now, so obviously production could increase, but it will take a couple of years even if the wells are successful to pay off the U.S acquisition).

So without anything other deals etc occurring, which I have a feeling may occur, we get a negative cash position of anywhere between $20.9 million to $24.5 million. A fairly dramatic change in the balance sheet. And of course, I think it will be much lower, as I have not included the costs of the U.S producing assets, or the cost of the 1-2 wells that need to be drilling in the Southern Canning Basin.

There's the numbers I have so far. I am sure Anatol and others can do a much better job. Looking forward to all the discussion, as it really is a very surprising deal.

Lastly, NSE has basically given 30% of its shares as part of the deal, which, I am trying not to pass judgement on it, but it seems to me that the new cornerstone investor has a pretty easy way of taking the company over... or at least getting control of 30.6% of the company.

Good luck to all longs.