That is the USA side, still wonder about the Australian side...

That is the USA side, still wonder about the Australian side which has rules that affect the ability of a company to use those tax losses. They may or may not be able to be used if control changes hand. I think that a tax expert with current information onthis aspect is needed.

"No idea on the Australia side as that brings in change of control and other factors. I don't remember reading anything about that either in the target statement."

Those five wells are not all "Morgan type wells", the ten wells may or may not be "Morgan type wells", and the staggered completion time will ensure that ADI doesn't have a fully taxable profit for a long time.

One would have to set up a spreadsheet and enter all the variables to determine at what point ADI actually starts to make a profit on the wells and at what point in time those profits would eliminate the losses.

Off the top of my head it won't be 2010 or 2011, and probably not 2012 either. Maybe 2013 if they are lucky.

And even at that time I wonder if they will be cash flow positive???