red emperor costs us$13.5 (10%) us$18.5 (20%)

AUD$2.8 doesn't reflect the farm in costs for Red Emperor. They will pay $13.5m min for 10% and US$18.5m min for 20%


Key points from the ASX RNS -
- RMP have to pay 20% of drilling costs for first Dharoor well up to US$25m then 10% thereafter.
- The additional 10% interest they have until the 31st August to enter they will have to pay for 30% of initial costs up to US$25m then 20% thereafter.
- Payment of US$1m to Africa Oil when Dharoor spuds

The same terms apply to the Nugaal project except there's no US$1m payment on spudding.

So to earn this interest RMP have paid
- AUD$2.8m (CAN$2.5) to get their foot in
- US$5m min for each of Dharoor and Nugaal for 10%
- US$7.5m min for each of Dharoor and Nugaal for 20%
- US$1m on spudding

So for 10% it's cost them US$13.5m and for 20% it's cost them US$18.5m.

Africa Oil have done well to squeeze and extra $10m for drilling costs for two wells. Where does this penny dreadful get there hands on US$20m is the question...