Would be useful if RZ did a talk-show on this to help flesh out the strategy and thinking.
My take is this is akin to a Royalty Interest (MAY retain base ownership rights) as opposed to an Overriding Royalty (ORR) - see below links which helped me to understand nature of the deal - but difference simply moot. At end of PSC the rights (& costs) will revert to MAY for the remainder of the Block 9 term.
Profit Oil is after Cost Oil is accounted for - to repay exploration, development & production costs. Profit Oil is accrued probably from Day 1 but would be based on a formula set out in the PSC (Production Sharing Contract).
12.5% of the profit is probably a reasonable deal where not contributing to costs (at all) and therefore not having to raise development & production funding thus avoiding significant SP dilution. A sit back let them get on with it and bring forward other things?
What's the deal worth? Probably heaps but first needs to get signed and then based on activity & news flow - depends on the oil found/flow. Hope RZ soon comments to give greater insight.
Links:
https://mercercapital.com/energyvaluationinsights/how-to-value-overriding-royalty-interests/
http://www.oilinuganda.org/glossary/c/cost-oil.html
- Forums
- ASX - By Stock
- MAY
- Cuba Block 9 Valuation
Cuba Block 9 Valuation, page-19
-
- There are more pages in this discussion • 9 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add MAY (ASX) to my watchlist
(20min delay)
|
|||||
Last
2.7¢ |
Change
-0.001(3.57%) |
Mkt cap ! $90.99M |
Open | High | Low | Value | Volume |
2.9¢ | 2.9¢ | 2.7¢ | $87.74K | 3.087M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
5 | 848777 | 2.7¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
2.9¢ | 284679 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
5 | 848777 | 0.027 |
3 | 98379 | 0.026 |
8 | 3469000 | 0.025 |
7 | 2024166 | 0.024 |
8 | 1123578 | 0.023 |
Price($) | Vol. | No. |
---|---|---|
0.029 | 50000 | 1 |
0.030 | 1005727 | 5 |
0.031 | 2970310 | 2 |
0.032 | 1503548 | 6 |
0.033 | 1466600 | 4 |
Last trade - 16.10pm 13/09/2024 (20 minute delay) ? |
Featured News
MAY (ASX) Chart |
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online