Diversification is a prudent strategy for NSE at this stage. The...

Diversification is a prudent strategy for NSE at this stage. The fact of the matter is Merlinleigh does not have a very high upside. The Southern Canning is a long long way from commercialization if drilling is successful. By the time they sink a few more wells down they will be fresh out of money. And if the next well or 2 is unsuccessful then NSE as a company will be at risk of insolvency. The only way that I can see an upside if they don't diversify is if they hit conventional oil - much like Buru did. Short term cash flow to fund longer term growth is a must in this current market. Will they achieve that through the US assets is the 64 million dollar question.