farmout to red sky energy, page-25

This sort of farm-in is always good news - win win for both parties - seismic will be the first move. When they eventually find a suitable rig in Oz or do a longterm deal with Wetherfords to construct a rig on whichever exp site is deemed applicable - great - but will need to commit to a minimum of $20mil in exp drill costs on the chosen site. That is the big concern - would have preferred a much bigger player to be involved that has the cash to throw around with a more substantial up front payment towards costs - would have meant handing over more than 20% thou. May be a good day to cut out in the frenzy, and buy back after the hoo haaa......
My opinion only of course.....