I think I know what is causing the confusion. If you look at the announcement on the 11/11 "MD’s presentation to the 2009 Australian Geothermal Energy Conference" it outlines on page 15 that BPT are to contribute 5mil toward the second well and TRU 3mil. Thus any extra costs are to be paid by petratherm I was assuming.
But then I went back to the announcement on 2/04/2009 "$7 Million Geothermal Drilling Funding offer conditions" and it states: "The benefit of the grant will be shared by all Paralana JV's equal to their equity participation (PTR 69%, BPT 21% and TRU 10%)Funding agreement provides upfront payment of 60% or 4.2mil prior to drilling. "
This is consistent with page 15 of the presentation. So all JV's were using their share of the previous 7mil grant for this well and even though BPT and TRU agrred to pay 5mil and 3mil respectively they had this shaved of by the grant.
So I was wrong they will need to fork out extra too just not as much as PTR as you correctly pointed out due to PTR being at 69% equity.
Thats solves everything, I'm happy now!
Lastly I agree the market factored in the delays. We actually sold off before close the day before the announcement so already maybe some got out early before the rest of the price drop today.
PTR Price at posting:
35.2¢ Sentiment: Hold Disclosure: Not Held
