20 billion cubic feet....., page-33

Hi There Miki,

Apologies, The "Q" related to the questions I listed.
ie Q2 - answer to question 2.

I was trying to figure out how they determine what percentage to farm out, maybe its not easily calcuated as I thought.

{936000 - (funds in bank) + (additional funds ) } / (value of FP)

(Calculatiing what $ figure we require for FP and divide it by the $figure that mgmnt has placed on FP)

This will give us an indication of what theoretical percentage they need to farmout, to satisfy our $ figure requirement.

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Variables:
funds in bank - they might not want to use these funds.
possible additional funds - value required to be free carried if thats a consideration.
The key really is how much management value FP.
***

I also understand that there needs to be incentive for the other company to take up a percentage of FP, but we also dont want to give it away too cheap.