Don't really follow what you are saying starscream but IMO, Lundin has transferred non performing assets into a company which holds the more prospective Puntland basins for several reasons. There may be some truth in wanting to keep his East African assets under the one stable but I see the main reason being to load up with shares in AOC at an all time low, using assets that may not have been viable otherwise, in the current market. If Puntland proves to be as prospective as believed, those shares will multiply many fold to give a much greater return than could have been achieved if held by Lundin Oil or sold to another party.
This is the reason previous advances of money from Lundin were negotiated as loans, rather than equity (the SP was too high). AOC has deliberately withheld any meaningful updates on the drill schedule, until Lundin could fully load up at share holders expense IMO.
RRS Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
