after the dust settle, page-4

My thoughts:

On the downside:
1. Disappointing not to retain 10% given all the work and cash spent getting this point. Kind of falling at the last hurdle with an updated resource (presumably much more than 3tcf?) surely coming by the end of the year.
2. $800m USD is a satisfactory price. Its a shame that 200m of that is delayed - we're unlikely to see it for several years - so its really a $600m deal.
3. We may not see the cash ~650m AuD until October. Would have been great if there was an initial $200m cash up front payment.
4. Origin have done very well - its a great asset for them and they certainly haven't overpaid.

On the upside:
5. A large cash injection the size of market cap shows how undervalued KAR has been. A rerating will occur and the SP is likely to settle back around $5. Don't see it going above this until we get some results from K2.
6. KAR can really be South American focused now. Unless the Carnarvan basin gets a very surprising result, I don't think KAR will spend further up there and I'd prefer to see them farm down for follow up wells (if any).
7. Good results in santos basin and presalt prep can now drive the SP strongly. Double digit SP (assuming positive results) are certainly on the table.
8. Will need to wait to see what the board changes will be. I think KAR realise they were facing a board spill at the next AGM and want to shore up the positions of Bob et al. I reserve judgement on this to see if they can add some more South American heavy hitters. I'd certainly like to see salary expenses curtailed and options only issued at prices that account for the Grace mistake.
9. The rest of 2014 should be smooth sailing for SH - until we get the Kangaroo results..