eir/ctp farmin analysis, page-17

Sav-J a few comments/mistakes on your analysis (IMO)... Sorry for bringing up an old post guys - but i only just read through this post by Sav-J...


Firstly, I believe the $10M means nothing especially because they only receive it AFTER 1TCF is firmed up... the minimum value for 1TCF is $400M anyway (going by the recent deals), so receiving $10M after firming up 1TCF is not going to do much to the share price at that point in time. So you can't really say they are effectively paying $6M - I don't agree there... The $10M is only there to fool us investors i think...

From your analysis you say CTP fund 40% of the of the well costs to retain 55%. But going from the announcement, EIR funds the total 100% from my understanding.

The reason why I say this is because GGS (subsidiary of EIR) own 20% already which was farmed down from PXA, and PXA was originally paying 40% for their 20% share. So i'm assuming GGS also pays 40% for their 20% share and then EIR pay 60% for their 25%. This totals to 100% for a 45% stake in EPA130 for EIR and 55% remaining for CTP at no cost. That's why i reckon its a good deal!

If i have mis-interpreted something please let me know..