The previous announcements were always showing the WI before the vendor exercised back-in rights. In other words the %s shown were the % share of the costs of drilling the well and taking it to production if successful. Once that stage was completed then the vendor could exercise its back-in rights to take a larger slice of the production.
Originally GGP had started with 50 % and then farmed out 6.67% to its "friend", Nuenco Oil. Now I know Nuenco was expected to go down to 5% WI once the well was completed. That has happened. So I would have expected GGP to have dropped down from 43.33% to around 36% say once the vendor (Eastern Advisors I presume) had backed in.
Not too sure what this really means. Why GGP has got back over 50% is a puzzle... or not ?
GGP Price at posting:
22.3¢ Sentiment: Hold Disclosure: Not Held
