is this plan B?, page-33

re: at the end of the day PRE coughed up a 200 mill contribution to a drilling program
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FV & Stevo,

It was bit more than that, USD40mil cash plus 3wells @ USD 70mil each, for a total USD250mil.

I had a look at KAR's last 5 Annual reports & dug up the following figures on the drill costs for Brazil over the last 5 years,

1) 2012: USD 16.122 mil spent on planning, 3Dseis interp

2) 2013: USD 232.070 mil spent on 3 wells, Kanga-1, Emu-1, Bilby-1, seis interp etc

3) 2014: USD55.893 mil spent on planning for K2 etc

4) 2015: USD 193.221 mil spent on K2, K2ST1, K2ST2, KWest1, Echi-1

5) 2016: USD 21.25 mil spent on appraisal drill planning

6) Sept2016: USD 15.5mil paid for acquiring PRE's 35% stake (USD 5mil pending till 1 MMbbl production)

Total: USD 534mil (out of which USD210 mil was paid by PRE for 2013 drilling program).

I've disregarded the US25mil KAR paid in 2007 for acquiring 5 blocks in Brazil as this probably was compensated under the 'Back-costs' etc of USD 40mil cash by PRE.

I suppose someone could write to the company & ask them the total expenditure till date in Brazil.

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Noticed that DEA has some undrawn cash in a RBL Credit facility, so mayb that's where they can fund the 50% farm-in with KAR.

Not sure how long the exclusivity period runs for 60-90 ... (??) days, but they did open up an Office in Rio in June this year. Hope to see more clarity on this deal in the coming days.

DEA's current 2P reserves are mostly in Norway, Denmark, Germany & North Africa, so half of KAR's current 2C of 129 mmbls would be a start I guess, hence the exclusivity to do the due diligence etc prior to exercising the option for the 50% equity in the 5 Blocks.