Great discussion going on. So.. now that others have shared...

Great discussion going on. So.. now that others have shared their views, I will chuck in my meager thoughts on the deal.

I am a great believer in the Canning Basin, but also in the Cooper Basin.

Firstly, in regards to the part of the transaction with AQO and its PEL 570 tenement (which from my research is extremely prospective for not just unconventional, but conventional oil and gas), I think many are underestimating the cost of 500km of 3D seismic. It will be at least $10 million, if not more. Secondly, the farmin is for $42.5 million; the numbers do not stack up for me. As even if the 3D seismic costs $15 million, the ONE well would not cost $27.5! If it somehow does, then NSE needs to explain how and why it would drill what I belive, might be the most expensive onshore well ever done in Australia..?

i.e Depth, Horiztonal?, 20+ fractures etc etc

That aside, since NSE seem happy to give away 30% of the company to MHR, why not do a scipt bid for AQO instead, who owns 100% of PEL 570 in the Cooper... They would gain $10 million in cash which AQO holds, get 100% of the tenement, and provide both companies with a great suite of acreage...??? without needing to take on any debt. Then if MHR are so keen to enter the Cooper Basin, they can farmin!

I am just dumbfounded as to why they are entering the U.S.

Are management purposefully trying to give the company up for nothing??

Good luck to all the loyal longs.