I have been looking closely at the Shona Merger, and I think there is more to it.

CNE may be on the right track with the merger even though they giving up alot of shares.

At first one is led to believe that the merger is all about buying reserves and gas production, which even though has high prices in Colombia is still not even close to the economic equivalent of a barrel of oil.

If you go to page 6 of the corporate presentation you can notive shona has 3 blocks around Capella.  CNe only has a 10% working interest in Capella.  90% is owned by Emerald(Sinochem).  These guys have proven to be very slow in developing the field.

CNE must be after the acreage aroud the 1.8 billion barrel Capella because they see an extension.  This was the case with LLA-23 which was adjacent to Rancho Hermoso.  

This acquisition would give CNE 3 blocks next to Capella which could prove more valuable than any gas fields.

In my opinion CNE has the most potential of any Colombian oil company.  I can see the price of this stock pre consolidation go to $5 by this time next year.