They had a 33% share of any costs in excess of their $33M free carry. Their total obligation is $18.5M, which means the total cost excess was $56M over budget.
That means the total cost of the well was $89M - for a well that was budgeted at $73M and was completed ahead of schedule with no drilling problems.
I have absolutely no idea how they could manage to get it THAT wrong?
As I see it, they are completely stuffed now. You don't get into any promising new ventures with $1.25M of cash and a market cap to match.
TPT Price at posting:
3.8¢ Sentiment: None Disclosure: Not Held
