MEL earns its 10% right to participate in exchange for paying 13.33% of the costs. If the total cost of the well exceeds $10m then MEL will pay 10% of the additional costs - in line with it's working interest. i.e if it costs $10m we pay $1.33m; if it costs $15m we pay $1.83m.
Exactly as it's written on the can....
The expected dry hole cost is $8.5-10m according to K1 Capital (OEL research report). Production is expected at >18 mmscfd gas + 1.8 kbcpd over a ~20 year lifespan. That's around 7 PJ and 657000 barrels per day. That would give around 21m + 50m of revenue per year before royalties - or 7.1m to MEL before royalties.
What do you mean by "like the first one"?
Add to My Watchlist
What is My Watchlist?
