GulfSlope Energy Inc (GSPE)

[spec machine]

Interesting thoughts and all have merit

I always figured there was a big "back-channel" component likely in any deal

It's really a small world of GOM exploration and any of the key players could probably say "hi" and start up a conversation about each other's kids baseball games at a trade convention or such

Just a potential scenario of "who needs" what "GulfSlope has"

GulfSlope has - Exploration expertise including subsalt, Qualified Operator status, connections/alliances built over decades, partial backing (as long as Delek is still onboard), one lease/prospect, extensive seismic products, publicly traded, NOLs

Who needs - private (unlisted) company, has leases with subsalt potential, lacking subsalt exploration expertise, lacking capital or otherwise underperforming mgmt, or BODs see value in a business combination for both parties "win-win"

so you are absolutely correct in regard to - it's not a buyer's market

I say there could be a wild card out there that throws the whole calculation

Maybe Delek sees a property with a producing well and platform that would be a perfect pairing with a well into a subsalt prospect on that same lease or one that can be acquired adjacent to it

In short, a strategic acquisition that fits Delek's longer range plan and still taps the value of GSPE (which they hold a bunch of)

The payoff is potentially large enough to render the short term cost insignificant as long as there is a clear regulatory path to drilling and stable cost/taxation expectations

So, there's always room for, and a possibility of, a deal that makes total sense

even in a brutal market

as long as there is light at the end of the tunnel

spec