petrobras 4th quarter and fiscal year results, page-42

The good Doctor,
you posted:-
"YOu assume MEO will give up 70% for simply getting a free-carry on one exploration well".

Well I don't know where the 70% comes from but its not the farm out figure I used in my post.

If you look at my post you will see that I am comparing the two options not purely discussing the merits of the farm-out. I am well aware of the appraisal wells that MEO has requested in it's indicative offer.

However, its you that hasn't thought this thru Doc bcos the appraisal wells are a cost that has to be paid for by Petrobras/farminee under both the takeover scenario and the farmin scenario. I specifically excluded them bcos they are common to both. Whether its a farm-in or a takeover, if the exploration well is a success, the the farminee or the takeover party will have to pay for the appraisals. They do not have a bearing in comparing the farm-in option to the takeover option from Petrobras' point of view. They do not affect how much extra Petrobras would have to pay to get the extra 20% of Artemis that it would secure in a takeover scenario.Capiche?

ANZ