According to my old notes going back several years, I estimated EPR probably have to cough up ~7-10% of well costs to cover the unfunded portion of their 25% stake in Fermat.
This is a very rough estimate because previous announcements dont reveal what percentage of costs Mitwell/BPT are paying for their share of Fermat.
If Fermat costs $25mil to drill, then EPR need ~$2mil. However, todays announcement suggests a combination of cap raising "AND" farmout.
Obviously the suprise rescheduling of the rig has pulled the rug out from under them and they find themselves still negotiating whilst the drill bit is spinning.
EPR Price at posting:
3.0¢ Sentiment: None Disclosure: Not Held
