Without the deal, nse has 31m net cash plus 28m asset (based on implied recent acquisition by petrochem) 59m/302shares is base val of 19.5c.
With the deal this dilutes down to 0.136 per share (assuming 431m shares post deal.
Without deal nse have a 0.195 val company with commitments to drill a higher risk project n drain on cas reserves
With deal, nse have acces to 5 producing wells which will create additional $3m cash (between now and June) plus potentially more from the additional wells. Further, should debt financing be secured against reserves (talks of which are already underway), the funding of the EFS is sorted - so providing NSE hits wells successfully, it would start churning out cash which could be used to explore its Australian assets.
As part of the deal, companies have been offered stock at 0.16 and 0.154 cents (above current stock price!!).
I can't see how having a billion dollar US company becoming a 13% holder can be bad, except that it could start buying up (takeover) on any great news.
With 2 wells coming on in next few months, the ability of reserved lending and a billion us company as the main equity holder I think this is great news....
DYOR of course
NSE Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
