I think we will see unexpected moves by these bidders soon. It...

I think we will see unexpected moves by these bidders soon. It might get more interesting after today.

DLS has already made a 3D seismic on nearly 40% of PEL-570 (without permission of AQO) while making it for PEL101. The 3D seismic is a must on the Patchawarra Trough to see the geology down there (Senex drilled a well and decided not to do anything without a 3D seismic after hitting the water filled formations last year).

MHR who has a great experience about conv.and unconv. resources, has already made its move 6 months ago by getting 17% of NSE who has farmed in 52.5% of PEL570 and its operatorship. This was done after making a lot of research together with some other guys who has association with MHR and NSE now.

Therefore, MHR is not going to give up easily. DLS is too late to make its move. DLS's move on PEL570 has encouraged MHR but did nothing else as DLS has the 3D seismic and know the geology on the area very well. However we can see by DLS's bid increase today that they don't have enough room to increase the bid up.

Btw, I think a T/O on NSE by Drillsearch or MHR would be more rational as NSE has only $59m market cap today and holding 52.5% of PEL570 plus producing Eagle FORD assets, huge Canning assets and Carnarvon assets. But it would be very hard for DLS to do that as NSE would be too complicated for DLS to manage.

Anything can happen now.