Ann: US$100m Non-Recourse Debt Facility to Fund D, page-9

re: Ann: US$100m Non-Recourse Debt Facility t... Yes they have or are about to give them 25% of pre tax revenue after all costs.

Now that may seem like a lot but if only the initial $5m is loaned 15% has to be repaid within 12m.

Realistically in this environment I thought they could have to sacrifice up to 50% of their acreage for a single well drilled.

Libor plus 6% (currently 6.25%) is not too bad.

With EOG having permitted two wells in Avoyelles county for the tuscaloosa marine shale,the austin chalks may ultimately become second fiddle in 1-2 years time.

With their acreage both north and south of the edwards reef trend there is certainly interesting times ahead.

The deeper overpessured Tuscaloosa could well turn out to be condensate rich with considerable gas drive.

Only time will tell.best to all.