what went wrong?, page-10

"CommSec maintains that ROC’s acquisition of AZA has destroyed shareholder value. This is due to the capital involved, which is estimated at being up to $A 1,230m for field development plus US$ 400m for a larger FPSO, this estimate factors in CommSec’s assumption of $65/bbl as the Long Run oil price."

I guess it all depends on what ROC shares are trading at.

When ROC acquired AEL/AZA they basicly issued 289M shares. At yesterday's closing price of A$0.44c they paid the equivalent of A$127.2 or US$90.8M for the assets.

With BMG having 7.7 mmbbl prove and probable reserves and an additional 18.7 mmbbl contingent reserves it probably represents a good purchase for ROC if you yourself are buying ROC shares for A$0.44.

Regards

SP