Hottuna,
I am no supporter of some of the management of this company but this deal is a no brainer. For the sake of US$15m (which is peanuts in this industry), the company now has full control of a quality asset. These deals are never as straight forward as they seem. Karoon's pre-emptive rights are a powerful asset but they can have the affect of chasing away potential purchasers, particularly in this case when the seller is distressed. Buyers wont waste time and dollars entering a sales process when they know that unless they pay over the odds, Karoon will simply use their rights.
As to the value of the asset, sure it isn't viable at current prices but you would do well to find many in the industry that regard current prices as sustainable in the long term.
Ann: Karoon Acquires Pacific's Interest in Santos Basin Blocks,STO-KAR.AX, page-11
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