Originally posted by Spitfire
I cringe every time now we release positive news and it gets lost in a complete cesspit of apathy, bewilderment and misunderstanding of what it actually entails and the potential it could bring.
Ok.
Any costs going forward on Santa Cruz should be billed as cost recoverable, including time spent by MAY employees working on this.( time writing)
Next stage , the same plus equipment, services etc...should be 100% cost recoverable.
MAY should be able to cost recover all costs in working on increasing production in this field.
The PSC Terms are obviously confidential as are many, however just to give over a scenario.
All costs should be recoverable from Petro Cupet and company now enters a strict cost recovery program where it should ensure every doller spent in personnel , timewriting, studys, business travel related to Santa Cruz, ancillary work related to it, etc etc is cost recoverable if it’s not, it should not be done ....when it comes to actually spending money on drilling/ sidetracking etc, also should be 100% cost recoverable . There will be clear guidelines of what is not cost recoverable and as per the exact same scenario I work with bp, MAY bloody well needs to ensure that every doller spent going forward here for Santa Cruz is inside those guidelines for full cost recovery. There is absolutely zero value to the company and it would be bad management in spending our own money in looking to raise Cuban oil production if we do not recover every cent back !
After cost recovery, There will then be a structure of profit sharing for every barrel over above the base level , which clearly is confidential .
scenario... if base level is set / agreed at 2000 barrels a day and new work raises this to 3500 barrels per day , MAY should cost recover all costs spent and a daily profit portion of 1500 barrels.
Each barrel over the agreed base production level is a source of profit income each and every day for MAY.
This is the type of announcement that would have seen really good sentiment, interest and energy on the AIM Market, completely lost and under stated by the ASX as usual, like everything we release it seems.
They are completely wasting their time solely listed on ASX ...not only for Cuba but also it seems for the local assets as well.
I half expect now , partnership announcement and firm drilling plans to be binding on block 9 and we drop back.
There is only one scenario now for moving this company properly forward and it needs to happen IMO.
Has anyone here actualy realised or taken on board , this is the FIRST scenario I think where we are now spending our own money to at the very least get it all back in full cost recovery .
On top of that we now have massive potential in the future to be profit making each and every day from daily oil sales...
Hi Spitfire! I understand the cost recovery aspect and its future implications for MAY all right, but I can't understand why the % profit share should be kept confidential. As shareholders in a public company we surely have the right to know what our company has let us in for,( the deal struck), and Cuban taxpayers surely have the right to know what their Govt's (Cupet) take will be.(There again, its a Communist country so maybe not) This is essentially a farm in agreement and I cant think of any other where such details are kept confidential once the binding agreement is made. For sure, during negotiations and until signed and sealed, but why after?
