KAR has offshore blocks in WA, it spent about 15million on siesmics for 2d, it then did a JV with conocco whereby they get 75% of that field and KAR get 25% and the cost was, they get their 12million back. (dont quote me on the numbers, we are going way back).
So in this case you have a block which has POTENTIAL to have oil, a company in Range that has no money to do anything about it other than ask for say a few million tops and sign the exploration rights away of a few percent in royalties, now KAR has been in the workds for drilling for 3 years and i am still waiting.
So, with management as you know, using history as an indication, how much do you think they will A)get B) ask for. Remember they paid consort 10million plus for 100% then onsold 80% for 5million.
cheers B
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