yes looks interesting been doing a bit of a look back at pel 105
105 Details: �� Area of 437 km (100,000 acres) �� Prospective acreage and targets permit multiple wells �� 11 exploration wells are drilled within licence area �� Five gas fields with some oil discovered within boundaries �� Most of block has good to excellent seismic coverage �� Work commitments not onerous �� 60 km north of Moomba processing plant �� Very large structures and numerous unconformities leading to potential accumulations of oil and gas
Austin first announced purchase from hughes and hughes on 09 october 2007 the same day they announced farm in agreement with adelaide energy
ADE cost of first well 100% all other wells 50% akk cost of first well 0% all other wells 50%
ADE NRI of first well 41.667% all other wells 41.667% akk NRI of first well 41.667% all other wells 41.667%
this then changed in 02 nov 2009 which has ADE pay the first $1.75m costs of the first well pirie #1 and then a further $875k which will be matched by AKK to a max $3.5m in return ADE gets the first $1.5m revenue after which i presume the revenue is split as per the original 41.667% if unsuccessful and i presume will also be paid if the well is not drilled $400k on top of a already recieved $250k payment
as we know this new arrangement was done in the middle of park city litigation and the rights issue so they wanted the money
so now the shoe is on the other foot AKK have the money in the bank and ADE are in need.Possibly this well will not be drilled by Adelaide energy to to funding constraints may open the door for AKK to retake full possesion and refarm out or drill them shelves
may even speed things up
AKK Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
