Ann: ORIGIN ENERGY LIMITED PEL 514 GAS FARM-OUT , page-14

re: Ann: ORIGIN ENERGY LIMITED PEL 514 GAS FA... Agree Pinto, there will have to be a farm down to ORG for the participation $ required by PGS on the deeps deal in PEL 514 (raising the funds would be ludicrous at these prices)

The question is how much? My rough numbers using ORG numbers
=
$64M = 40% > ORG secures in deeps
$16M = PGS participation $ (2 x $8M per stage)
10% = $16M Free Carry for PGS

Obviously no actual detail provided, but by looking at ORG, SXY & PGS tables the above is logical outcome.

Basically, if ends up as above PGS will have secured

10% of deeps (gas) with $80M free carried
20% of shallows (oil) with $45M free carried (+ bonuses)
+
$4M+ in the bank

So, taking into account cash EPV for above = $9M @ 2.5c, I think it's a speculative buy awaiting future drill bit success, but I suppose we still need to see the actual details of farm-down or participation funding hence market is sagging considering the scale of works to be fully funded. At the end of the PGS will be sitting back waiting for some success when drilling occurs & ORG/SXY will not waste anytime in getting the ball rolling, I'm certain of that...GLTA