dominian - ophir farm out and more

Just saw that "Ophir Energy buys Dominion Petroleum for £120m" this is a premium of 64% on the closing SP. The ann. was released early this morning London time (about an hour and a half after our market closed), leak may have cause WHN's rally late this afternoon?? Tomorrow will be interesting.

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11004852

After this purchase Ophir still has more than $200 mil in the kitty for drilling, farm-ins, TO, etc. Ophir has to be for sure one of the parties interested in our Seychelles assets.

After reviewing seismic, etc. in the data room, is a TO possible? What price?


Having been lead to Dominion I was looking around at some of the old notices and this one from last week caught my attention:

"Dominion is pleased to announce that it has agreed to farm-out a 20% working interest in Block 7, deepwater Tanzania to a subsidiary of Mubadala Oil & Gas (“Mubadala”). Following the completion of the transaction Dominion will hold an 80% working interest and operatorship in the Block. Under the terms of the agreement Mubadala will pay Dominion a $20 million cash consideration on closing and carry Dominion’s remaining 80% working interest in a new seismic programme expected to commence prior to year-end up to a cap of US$2,400,000"

Highlights:
* Only 1 block (WHN has 35 Blocks!!)
* Retains 80% WI, yes retains 80%
* $20 mil cash
* Carry of up to $2.4 mil 3D seismic

Just shows how valuable the East African properties are. Makes talk of a 50%-70% retained interest by WHN sound low, a higher percentage is certainly possible especially with a farm in specialist on our team like Steve N.