What is fair value. ????

This part of the deal seems to be the funny part of the deal in line with the TOP-UP that is added on.
Fair value with or without the contingent reserves report for the B sands included in this KMPG report being done. ????
TOP-UP set at 70% of any SP rise %age after the deal is consummated and set in ink.

So far ERM have agreed to pay EGO $16.34M for the sale of its part of all EGO assets it shares in. This figure then must be taken that is what ERM values its part of the JV is worth without the B sands reserves being completely known but is included in the sale price regardless. This is the risk they take selling their part in the JV.

I ask how can you join in for a TOP-UP after the sale on so called fair value after a substantial SP rise and ongoing EXPLORATION SUCCESS with the possibility of 4 wells in the next 2 yrs and what if all are good discoveries.???? EGO are committed to 100% costs less what any farmin partner might contribute but still while the loan is outstanding ERM are entitled still to the TOP-UP facility on no risk and no cost.

How quick will the board repay this loan to reduce it in the 2 yrs they have before the TOP-UP comes into effect.???? Say they sit back and not pay any and 4 wells are drilled and all discoveries. Ok SP say goes to maybe 5c (hypothetical figure) from the say 0.008c they sign the deal at and a %age rise difference of 525% and at the agreed 70% of the rise is still a windfall of 367.5% to ERM as the TOP-UP. $16.34M x 3.675 times =$ 60,049,500 TOP-UP + the $16.34M owed = $76.3895M TOTAL to ERM.

If my figures are correct then the next question we need to ask ourselves is this TOP-UP fair on the SHERs and EGO to pay after the sale. ???? Someone with more maths minded please check these figures, just my workings only from the way I see it.

Next question, how do we pay this back before the 2 yrs and what the terms after that.????? How much gas, oil or condensate do we need to produce, (if we still own the plant) to pay this back, is it achieveable.???? Debt will be blown out considerably.

Is it best to sell plant and pay off immediately against the $16.34M owed.??????

Keep the plant ,reduce opex, add the LPG stripper for more revenue, wait till Tranche 1 is finished and then pure CASH profit from ALCOA and pay off debt. ??????? Will the plant hold up for this.????

Mind you all in this, ERM holds 19.9% of EGO and enjoy the LUXURY rise of the SP. Nice double dip,

Their cake is GOLD PLATTED too.

Should be a upper ceiling level for the TOP-UP.

The vote on the deal should be broken up instead of 1 WHOLE vote covering the ENTIRE deal.