The big winner from this is Magnum Hunter & the "Vendor"...

The big winner from this is Magnum Hunter & the "Vendor" Pathfinder/Outback.

No doubt about that IMO.


I still do not understand what exactly Pathfinder/Outback are doing to earn their potential 60m shares + 2.6m cash.

They had originally agreed to a JV with Ambassador, but effectively pass this onto NSE. As a result, they pick up 60m shares + 2.6m cash. Did they spend any money on the permit in the Cooper?

At least Hunter Magnum Hunter has given up producing assets & will be providing technical expertise.

What on earth is Pathfinder/Outback going to provide other than "rbinging the deal to NSE"?



All of this done with NSE's SP at multi-year lows, about 20 cents lower than what I would consider "par" value IMO. It has been massively oversold.

So they get the upside to the Canning, Goldwyer & Cooper basin but they're paying about 1/3rd the price.

NSE is buying cashflow but it comes at a very high cost IMO.

I look back on the Canning drilling campaign and wonder how different things would have been had they started drilling from the East to West, most prospective to least prospective, rather than the other way around.

Oh well.
The next week or so will be interesting for NSE's SP.

That the deal was done in just 2 months sounds like a hurried decision unless they dedicated the company's entire technical team to DD of the Eagleford Shale assets & Cooper.

It's difficult to know what to make of this.
In principle it is sound for the company to have immediate cashflow and potentially more. It jsut seems to me like they have done it with an SP at rock bottom.


Nothing much will be happening until they drill the Eagleford Shale in Q1.