CNOOC has to contribute $50m towards exploration and appraisal expenditure by 31 August 2013. But the Financial Resource slide at page 15 in the February Investor Presentation (that presentation really got the investors excited eh!) clearly suggests that EXE will also be "contributing" to the JV expenditure, and that in order for CNOOC to maintain or achieve 50% it would have to match that expenditure over and above the $50m.
Basically we do not know the detail of the JV agreement.
But the Fixed and Contingent funds (aside from the CNOOC $50m) which the Company was touting it would have available to go towards exploration through to the end of the Farmin period has just been reduced by 80%, ie maybe $17m instead of $82m.
The Company's last quarterly suggests to me that the EXEO disater leaves the company with not much cash in the kitty.
So in my view the capital raising tin will be rattling soon. A very poor result given the early CNOOC fanfare.
But I will be happy to be corrected on any of the above points.
Cheers
EXE Price at posting:
22.0¢ Sentiment: None Disclosure: Held
