palta as seen by whn, page-6

From oxx website- I guess the key is the 1% of gross recoverable could be a big number if the field is big. 5m payments along the way help. Also interesting that oxx chose 5m cap on Winchester side track. Perhaps they expect a plata payout soon



Shell has agreed it must either commit to a well in each permit (within the timeframes outlined above) or reassign the 100% interest for nil consideration for any permit where no well commitment is made.
Shell has agreed to make two tranches of Discovery Payments (being either (a) or (b)) to the Octanex Group for any Discovery (as defined in the agreement) made in a permit but limited to a maximum of three Discovery Payments per permit. Within six months of having made a Discovery Shell must either:
(a) Pay US$5,000,000 to the Octanex Group; or
(b) Reassign to the Octanex Group a 100% interest in the permit in which the Discovery was made.
Following an initial Discovery Payment as described above, if Shell:
(a) spuds an appraisal well in respect of the Discovery; or
(b) applies for a production licence or retention lease in respect of any Discovery,
then Shell must pay a further US$5,000,000 to the Octanex Group.
Shell has also granted the Octanex Group a 1% Overriding Royalty (as defined in the agreement) payable on the basis of the gross assessable petroleum receipts recovered from a permit.
If at any time Shell wishes to exit from any of the three permits, a 100% interest in the relevant permit must be offered back to the Octanex Group.