qgc takeover, page-49

tas,

all these calcs are a bit confusing and may be unnecessary but i will throw a few more your way lol

qgc have bought pxa which had an agreement with ctp in which they could spend 40% of the drilling costs on the first 3 wells in each permit area to earn a 20% interest in each of those permits.

if this occured on all the permit areas then the total cost to qgc is estimated to be $170 million and the cost to ctp would be $255 million.

the $18 million for pxa's 20% of the permit areas under the jv values those tenements at $90 million and ctp's 80% at $72 million which is 18c/share (i made a mistake with the calcs in my previous post)

i suppose some may see the need to throw the additional expenditure (they are paying $85 million more than the 20% would normally warrant) that qgc will outlay for their 20% into their calculations. so $85 + $72 = 39c/share.

i stated in my last post that qgc may only wish to retain an interest in 1 or any other number of permit areas but i dont know if this is true under the terms of the jv because the jv may say that they have to spend the money and retain an interest in all the permit areas. maybe someone can enlighten me.

non of what i have just written makes sense does it....i mite just shut up now coz i am confusing myself.

i will just hold and let the market decide lol

cheers