cnooc buys inro exe !!!, page-13

The question is, how does one digest this deal. With a market cap of around $90m, CNOOC got around 50% of the tenements at a cost of 56% of their current market value. This would seem to halve the value of the shares held by EXE holders (who've just lost half their tenements), but the extra $50m for drilling and access to the Chinese market will add much more value than what would appear to have been conceded in this deal. EXE did not have the resources to conduct an aggressive drilling program - now it does, and 50% of 100tcf of gas is still a massive motherload of gas, especially when action can now be taken to get it out of the ground. The bird in now in the hand instead of in the bush, and that's worth twice as much!