As Genel, I would think they feel the offer is fair. The below was taken from LFD's latest financial statements:
5) EXPLORATION AND EVALUATION ASSETS
Costs included as intangible exploration and evaluation costs at September 30, 2011 of $78,670,936 (December 31, 2010 - $68,478,764) consists entirely of costs incurred in Kurdistan. Of the total additions for the nine months ended September 30, 2011, $1,561,440 (2010 – $1,063,637) is comprised of general and administrative ("G&A") costs (Note 11) which has been capitalized as it directly attributable to the E&E assets. This asset has not yet proved commercial viability or to be technically feasible and therefore is still included as a part of E&E.
To date they have spent $78.7 million (this includes the $25+ million owed). Genel will pay $70 million, which is about 90% of what they have spent. You will notice that G&A costs are capitalized, so direct spending on the project is less than the $78.7. What has LFD acheived after spending this money? They do have a new revamped website and some nice pictures. They have not brought this property any close to production (or proved reserves) than when they first aquired the lease.
While everyone is calling for some white knight to come in and make things better, I do not think this will happen. Sorry for bursting some of your bubbles, but you need to be realistic here. I'd love to get $.40, but I'm hoping to get out around the $.20 mark when the details are released and never look back at this POS and useless management team.