Ann: Transforming New Standard Energy , page-158

Got to wonder why NSE and AQO don't merge. The combined entity would have $45 million cash and some of the most exciting shale gas tenements (unexplored) in Australia. It would diversify both company's risk across Australia (Cooper and Canning) and be a super juicy morsel for an international to takeover down the track. With $45 million they could do the seismic in the Cooper, drill a hole in the Canning and perhaps the Cooper, and still have $20 million in cash left over; a nice buffer so they could raise equity should both first step produce crap results.

The thing is, sometimes what is good for shareholders is not good for keeping paycheck flowing to management.

When I look at the NSE deal, I wonder if management's job security (the result of having an income stream from US) played a roll in the decision rather than serving shareholders - who, for the most part, seem to want exposure to shale drilling in OZ and were willing to shoulder the risk (as part of a diversified portfolio). If I want exposure to US shale, there are better ways to get it.