Maybe there's plenty of shows on the existing 2D seismic. Paying 80% to earn 40% sounds strange for a company that's belt tightening.
"Woodside will earn its 40% stake by fulfilling, and paying 80% of the costs of, the Carried Work Programme. This programme includes all work to be performed on the blocks, including seismic and drilling, through to such time as the first two exploration wells have been drilled and, if required, flow tested. Woodside has the option to withdraw from the PSCs after satisfying an initial work commitment to acquire a minimum of 5,000 km of 2D seismic. In this case, Woodside's interests would be reassigned to Dana and Star."
Commenting on the news, Tom Cross, Dana's Chief Executive, said:
"This is an excellent deal for Dana in line with our strategy. Bringing in a new partner will accelerate exploration offshore Kenya by applying additional resources to our vast licenced area, the equivalent of over 200 North Sea blocks, yet reduce Dana's expenditure by a factor of five. In the event that Kenya turns out to be as promising as early studies have indicated, Dana has retained a large stake in the upside."
No wonder Dana are smiling.
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
