My suggestion for a sweetheart deal for a super major farming into PEL 87:
Step 1) WDS takes up their option from PCL 56% WDS 19% PCL 15% Custos 10% Namcor WDS obligated to carry the other three through the first well PCL obligated to carry Custos and Namcor through exploration beyond first well
Step 2) All four agree to a farm out to a super major (SM) 60% SM 10% WDS 10% PCL 10% Custos 10% Namcor SM assumes all carry obligations through production WDS receives cash settlement from SM for 46%, no carry obligations PCL receives cash settlement from SM for 9%, no carry obligations Custos receives cash settlement from SM for 5% Namcor receives carry beyond exploration through production
What might those cash settlements be? My guesses (I like round numbers): WDS ~US$500,000,000 PCL ~US$100,000,000 Custos ~US$ 50,000,000
A sweet deal, all around, I'd say. SM gets a bargain to assume all the risk.
PCL Price at posting:
1.8¢ Sentiment: Hold Disclosure: Held
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