I guess I have been vindicated, albeit 4 months late. I think it...

I guess I have been vindicated, albeit 4 months late.

I think it a fair outcome for AQO considering that the farm-out they eventually organised was terrible.

NSE barely has any cash now, and for the foreseeable future will be spending it on thier U.S shale play, so I have no idea where they were going to get $43 million to pay for their farmin commitments. Of course, they keep spouting about Magnum being a 'partner', well, its a partner that has so far not put in a single $$.

Clearly DLS has the financial muscle to deal with NSE if the farm-in collapses. AQO have little cash, only 1 prospect which they are NOT operator.

DLS prefers not to be the operator when the right company is operating. Time will tell if this is a good decision (I hold DLS). For what its worth, I think AQO management are 100% to blame for the lagging share price. I wonder just what offers they knocked back in the last 2 years (AQO repeatedly mentioned that they had received unsolicited offers). I bet some of them would have been at a higher price than today...

WHY - because they gave up over 50% of the tenement and operatorship to another small cap.

AQO holders get the benefits of DLS which is only going to grow, don't have to pay tax and finally will be part of a Oil & Gas company that is actually doing something.

Win win in the scheme of things. Of course AQO holders want a better offer.. but sometimes thats how it goes when you have nothing else to offer but 1 tenement with no exploration occurring for another 18 months at the earliest.