The agreement is that Africa Oil has to drill four wells in three years in the Nogal and Dharoor basins to earn an 80% interest. Range expects the spending programme for the four wells to exceed the original estimate of $45m, and instead expects to spend $80m (in which case, 2.5% of costs must be sourced by Range). After fours wells are drilled it would cost around $10m to drill each well and would take about 60 days.
RRS Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
