As I’ve looked around today I have tidied up my understanding of the JV carry arrangements.
Pitkin picked up their initial 60% with a free carry given to the minor partners in the JV (NDO stayed out of this farm-in and so participates in the funding of all activities). The free carry is in respect of WLA until first oil. I hadn’t been sure of whether Forum were on the free carry. It turns out they are.
“Continued preparation to re-develop the West Linapacan Field by the operator RMA West Linapacan Pte Ltd; Forum will not have to cover any of the costs of the exploration programme until first commercial oil production” http://www.forumenergyplc.com/DocumentLibrary/Forum-2014interimsannouncement-23July2014.pdf
Pitkin have recently got their website going again and it sheds a bit more light on the arrangement between them and RMA. “Pitkin signed a farm-in agreement with the majority of the block’s consortium in May 2008 and has subsequently transferred half its interest and operatorship to a third party in exchange for being carried through an agreed work programme.” I believe this is the evaluation and FEED activities. http://pitkinpetroleum.com/service-contract-no-14c2-west-linapacan-area-offshore-philippines/
So there we have it – RMA carrying everyone but NDO through the evaluation and FEED, and RMA+Pitkin carrying everyone except NDO through to first oil (in respect of WLA)
NDO Price at posting:
4.2¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)