Strat Another piece to the puzzle. Alcor and Merak well sites...

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ronstieb

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14/11/15

16:10

Post #: 16396571
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Originally posted by 62strat ↑

The rebate would be at 75% for this drilling season. OEL will not be eligible for any of the rebate.

From the Open Briefing transcript in response to a question from Michael Skinner (Euroz): Matt Allen: "The well costs depending on the type and style of well are usually between US$20 million and US$30 million gross before concessions in this location. Otto, through the transaction structure, those tax concessions on the initial three wells will go to the Great Bear consortium. We won't get the rebates on those three initial wells but for future activities we will avail of the current tax concession rebates."

Ron, imo only the exploration well has the potential to be in a new block. I assume the 2 x appraisals would be on previous drills that had potential economic shows. That would be on Alcor-1 and Merak-1 seeing as GB have only drilled 3 wells and the third, Alkaid-1, is excluded to OEL at this stage.

I'm not confident that we're going to get 3 wells drilled this season, but there has been no communique from OEL so far to say otherwise.....drilling would be due to commence in late Jan early Feb (depending on onset of winter conditions)....I live in (desperate) hope!

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Strat
Another piece to the puzzle. Alcor and Merak well sites appear to be in the Alkaid commercial area, when comparing slides from the recent GB preso with OEL's Sept preso.

Anyway, just putting that out there.
Doesn't necessarily help indicate one way or the other re the 75% rebate going to GB for any 2016 drilling that involves OEL .
It does somewhat help justify the disparity between what OEL paid for option 1 compared to whats being asked for the Alkaid option.

OEL Price at posting: 2.9¢ Sentiment: Hold Disclosure: Held
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