That is pretty much how it works. CND can add value by doing analysis and reprocessing of the seismic (like they have done), maturing it's prospect inventory, getting independant reserve audits, maintain a data-room etc. Often you'll find Supermajors are not interested in doing the tedious 'leg work' it takes to develop a prospect themselves - hence why the "Explorer > Prospect Generation > FarmOut/JV to major" business model works. This is obviously very simplified, but important to understand if you're investing in this end of the market. Typically you'd also look for a management team and/or individuals who have succesfully done this before - ie, 'success breeds success'.
CND Price at posting:
2.1¢ Sentiment: Hold Disclosure: Held
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