Sorry was trying to get ready for work last and probably didn't word my one liner very well. I apologise not a criticism of you. Bit tired but will give it a go.
I will work off your 30M well as i don't think it should go above that but you never knpw. We haven't even booked rig yet as far as we know so costs are unknown.
I see them meaning that 24M for Far share of well plus 6.4M come off 45M but we actually get paid that 6.4M so not at 50% like balance is. We pay 8M for Erin share so does not come off 45M but we get back 6M plus 1.1M plus up to 1.5M which i don't read as coming off the 45M. So essentially we get pur 8M spent for Erin's share back on completion of well.
The reason i think the 6/1.1/1.5M isn't coming off 45M is the back costs of 6.4M are stated as including in brackets.
The other 3 amounts are stated as (also on completion)
You may very well be right. I just read it differently. As usual not all is plain. Or maybe i have rose coloured glasses on.
So i make it working on scenario of 30M well cost would be:
45M - 24M - 6.4 = 30.4M. But we actually get the 6.4M but comes off 45M balance.
45M - 30.4 = 14.6M ÷2 = 7.3M return off balance to FAR.
We pay the 8M for Erin up front but on completion we get 6M cash plus 1.1M. The up to 1.5M money back from cost we have spent so not a gain but reimbursement. So out of pocket 900k on that part.
Don't know if this makes sense but that is how I read it but having put it down it looks generous or put another way a good deal so you may be very well right. But as a shareholder i hope your not. Happy to read your thoughts when i wake up later. Or anyone else for that matter. Be kind.
All the best
SC
FAR Price at posting:
7.7¢ Sentiment: Buy Disclosure: Held
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