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12/03/15
19:01
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Originally posted by striebs
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Yeah , it's been a bit of a disaster .
On reading the farm-out again the deal is worse than I thought .
About 18m ago Igas raised £30m for two stratigraphic wells and seismic in the North West of England .
Then they merged with Dart in a deal which valued Dart at something like £100m .
Now , they farm out an interest which is almost equivalent to what Dart brought to the party for £30m , i.e. reimbursement of the well costs and seismic only .
The other expenditure which Ineos are required to make is not a carry . If it reaches production Igas have to reimburse Ineos for fronting their share of the costs .
Sentiment towards U.K. shale has deteriorated . On the plus side Ineos carry some weight and should be better able to deal with spineless poli's who are opposing shale because they think there are votes in doing so .
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http://www.echo.net.au/2015/03/csg-licence-cancellation-cynical-vote-grabbing-exercise/