this copy post from Thinkinloudly explains a tad methinks
" my take ... it might be useful to look at the resolutions published 6/8/12... ~ the commitment has always been there. the fact that J&J only just found it is hysterical. ~ some context ... @ 29 July 2013, $12m acquitted; $13m finance carry cap left @ 31 July 2014, approx further $6m acquitted => $7m finance carry remaining. ~ the original commitment was CTR 100% fund {acquit} $7m. =>of $19M acquitted to date, $12m subject to finance carry in which case somewhere between $3.6m and $4.8m is effectively a loan from CTR to the LAR minorities (30~40% depending on where Range sit in the paradigm...) ~ in the original resolution, no timing around the commitment is identified ... a dollar cap, and objectives map of 2 wells (aka A4 and A5) and '...the Guatemala Projects...', but no time identified ie two years, or before the next apocalypse etc, or before my retirement. Timing silent. ~ one might argue that 65m shares with notional value {at time of issue} of $850k might be part of that funding commitment ~ need to keep an eye on exchange rates. Mix of AUD at better than parity and USD floating around ~ I have no doubt the original intent was that revenue ex A4 would underwrite funding obligations ahead ... but alas! I think you will find that the specific 'Guatemala projects' obligations are: ~ free carry Santa Maria Inc 10% on A4 & A5 ... complete ~ 2 free carries on A4 after which the 3% minority holder can move to a heads up position ... complete ~ Petrolatina 20% carried interest to A2 tanks and well re-entries 63-4 and 63-5 .. not done yet but identified as the next steps ... so, if the management focal point is this funding obligation, based on what's available, I'd be guessing that the minorities are now being asked to assess their positions ... do you think the end of the world is still as close.... I also think that LAR might be saying let's get on with the Tortugas field obligations and CTR are saying fo, let's conclude A5... J&J ... it is entirely possible that CTR funded and LAR have acquitted all obligations re Guatemala Projects as contemplated in which case the US$25m cap equates to the already acquitted circa $19m with exception I think of re-entries. God help or the naysayers if indeed despite management's best efforts it is in fact a cracker!!! "
CTR Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
(20min delay)