Just to clarify. WBE get 100 % of Rex 1 until it is reimbursed...

Just to clarify.

WBE get 100 % of Rex 1 until it is reimbursed for building the facilities at Wizard Lake.
Now that Rex 2 is producing, Rex1 will revert to 40% of revenue to WBE once the $700,000 has been reimbursed.

Rex 2 income is split 75/25 until WBE is reimbursed for the $2,200,000 cost of drilling Rex 2. Thus WBE will receive 75% now and revert to 40% on pay out. But it will take many months to pay out and after Rex 3 is producing both Rex 1 & 2 will pay 50% to WBE.

On production Rex3 income will be split 75/25 until WBE is reimbursed for the costs of Rex3, and on payout will become 50/50.

By then we will be in 2020, and way passed the time that PLX has set for selling their share of Wizard Lake. So the future is great but not clearly defined.

Certainly we should have at least 50% of Wizard Lake by Christmas, the completion of Rex3.

Will be interesting to see when Rex 3 starts, I think the major consideration is having the funds to pay the drillers.

Bare in mind there is a need to change the facilities to handle more oil and to build a pipeline to handle the gas. Remember Rex 2 is throttled back to reduce the noise of the flaring gas. These items need to be paid for.

I mention production income, but I assume that must mean income after production costs are subtracted. Some day we will get a clearer idea of the cash flows.
The current higher oil prices will be helping speed the process up.

Lots of action and news in the pipeline.

Saltbus

Ps. I near laughed aloud when the interviewer asked Messina about Warro, he waffles on about lease holders in the Perth Basin naturally having a look at their leases in light of West Erregulla. I’m sure he won’t be looking very long.
Canada oil and gas is totally subdued. He will be looking for oil leases in Alberta at bargain prices, and drilling Rexes as fast as he can.