I am somewhat surprised by the price to be honest. I fully...

I am somewhat surprised by the price to be honest. I fully appreciates that these fields are in natural decline, so will require additional development to raise production. Thus, making rate of return much lower. However, while the value matrix looks decent at USD2.63/mCF for 1P reserve, it is almost too cheap at the 2P level. Given there is lots of gas sitting behind pipe which is yet to be classified, I think the management could have done better. Still, it does bolster the company financial position, effectively ruling out any chance of a capital/debt raising. Net cash position of 20mn after debts and hedging positions are closed will enable them to fund the CSG drilling program, as well as actively develop the Deerslayer discovery if it proves to be commercial, and to pursue other high-impact exploration targets - both in the US and Oz (perhaps Baniyas is not as far off as I'd thought).

Personally, I am neutral on the deal - with the relatively cheap price offset by the strengthened balance sheet.

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