"What is required in terms of the amount of holes drilled, and therefore funds, to reach the threshold of 'production be proven'? "
When one uses OPP and OPM, we leave these issues to the partner. Simply sit back and enjoy the free-carry entitlements.
Pressing for more, I would say the $150m outlay by Santos, the $200m by Statoil, and the $150m-$200m by Mitsubishi are the amounts they believe are required to prove a productive basin. In CTP case, $150m to prove the productive capability of 20m acres, moving the price from $11/acre to $11,000/acre, would give the acreage a value of $220b. $150m for $220b, what do you think?
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