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...
- Forums
- ASX - By Stock
- RRS
- red emperor costs us$13.5 (10%) us$18.5 (20%)
red emperor costs us$13.5 (10%) us$18.5 (20%)
-
- There are more pages in this discussion • 11 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add RRS (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
SER
STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
SPONSORED BY The Market Online