What happened to SM74?

  1. 543 Posts.
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    Hello from Iso!
    Back in country so I thought I would take a look around and its not long before I find more of the same old same old.

    First thing I notice, in the MEL annual report released on the ASX platform on 22 Sept 2020, p6, it states:
    "In July 2019 the SM74 well, which had a number of technical drilling problems resulting in cost overruns, was in the process of being plugged and abandoned when Tropical Storm Barry resulted in an evacuation of rig personnel delaying operations for several days.
    On 18 July 2019 Metgasco finalised its exposure to SM74 drilling program costs, after negotiation, by reaching a commercial agreement with Byron by which:
    x Metgasco paid Byron AUD $1.75 million to settle its exposure to the additional costs, on a capped basis (i.e. no liability to further cost overruns) on 30 September 2019; and
    x Metgasco agreed with Byron to exercise the 10 million options it held over BYE shares in accordance with its previously advised intention.
    Metgasco remains a 30% owner of the SM74 Licence having met its farm-in drilling commitment."

    Can someone point me to the announcement where MEL state that they are no longer an owner of the 30% WI?

    As per BYE's announcement in their DEC 2020 Quarterly Report (Page 8 South Marsh 74) where they state:
    "Byron relinquished SM 74 during the December 2020 quarter, prior to the June 2021 lease renewal, having completed all evaluation work and consulted Metgasco Limited, which had a residual right to a 30% WI."

    So that was a big zip for the old Metgasco. How much was dropped on that little baby?

    I am going to have a good look at this company again, I can already see other things that need disclosing.



 
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