They are having to give away 25% of the profits to acquire the field, and it is not that big. However, it is highly synergisitic with their current operations and helps in the process of building a very solid foundation from which to expand into their other prospects.
Soon we will have the initial reserve numbers in for NSA, in a couple months the production facilities will be ready and they can bring the appraisal wells and existing horizonal well into production. Just these experimental wells should yield about 700bpd, or US$5m+ pa. Then the main development project will kick in towards the end of the year, ramping this up considerably.
SAE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
