Ann: Acquisition of Interest in GOM - Investor Presentation, page-43

I don't think anyone has said that this acquisition is cheap. On a valuation metric it isn't overly cheap. Its broadly in line with other peers valuation metrics on the ASX though (I provided an example of this in BPT yesterday) so not really a premium either, market price I guess you'd say, so essentially the question is then asked, whats the point? You are acquiring an asset that theoretically doesn't increase your market cap as its not cheap.

I think most on here have a consensus view that the market has been discounting KAR for a while now due to the 1 geographical jurisdiction and the 1 asset reliance, as they do increase risk. This acquisition is all about closing the valuation metric whilst providing some good upside IF exploration activities come off. When I did my calculations yesterday (that I mentioned above) and when calculating Net profit I needed to estimate the cost per boe relating to DD&A which broadly relates to the acquisition price and that is substantially above that of Bauna, and thats largely due to the level of the acquisition price vs what we paid for Bauna, but like I said this is an acquisition that based on current production is broadly designed to close that valuation metric, whilst also providing upside potential from exploration activities.