They would have got a better deal if they had negotiated it...

They would have got a better deal if they had negotiated it before this. They just lost a TON of leverage.
They should have compromised a year ago at 2c and got stuff done without more dilution, cashburn and inability to raise funds.
That said at least they're not left with only 25% as would have happened when OXX was still involved so that is a small mercy.

Everyone should remember for next time that when the lawyers are involved never to assume you're going to win or that a case is strong. Every company that enters into litigation thinks they have a chance (that's both sides) and every forum always trumpets the strength of whatever pre-existing JOA or clauses or whatever supposedly exists as though the idea you could lose is obvious downramping. There is a reason most sensible people don't like getting involved when litigation is happening. It's expensive, takes forever and is wholly uncertain, and OBL certainly seem to be overly litigious.

Oh well let's see what they've got to work with now. I don't really know how OBL are supposed to pay for anything though. They're going to have to scrimp (management pay cut, or paid in shares) and do some kind of deal with REY to get seismic done this year, pay for a year's worth of operating costs and farm out ASAP to maybe get a drill happening next year.. And what a crappy time to be looking at farming out too, especially for unconventional.

Ouch for the guys that bought in at .7c the other day.