merlin pays dearly !

Roma Petroeum, via their subsiduary Permian Oil, have farmed down from 20% to 11% in parts of PEL 104, 111 and 115, to Merlin Petroleum. The terms of the farm-in were Merlin paying 20% of costs for 6 wells and some seismic to earn a 9% interest in those blocks within PELs 104, 111 and 115.

Simultaneously, Victoria Petroleum farmed down from 40% to 22% in the same blocks at the same terms, taking Merlin up to a total of 27% interest in those blocks

Merlin Ptroleum has to meeting 60% of costs . This deal has been at some consider able expense . Good luck to VPE and RPM . RPM has come out of all this with the best terms in leverage , rather than VPE.

It looks like ITC turned Merlin Petroleum down . I take it that Merlin would have approached us , as they went to RPM .Anyway we can see if they want to deny this ????

Time will tell as Merlin is digested . One point though, if a stike is made , calculations would have to include the dilution effect of the inclusion of the options , as they come into the money at 20c payable . Merlin share price has got to get over 40 cents surely on a successful drilling of a hole . ITC will certainly double .