A couple of facts to rest people's minds. Ophir Petroleum is taking on the debt not OXX. With RSCs because the contractor takes on the development risk, it is normal once oil flows the cap ex is paid back and then the contractor is paid a commission on oil recovered. The oil is always owned by Petronas. The field is supposedly 5MB but enhanced recovery and further discoveries may take it higher. The contract is for 7 years but who knows, OP, if it does a good job, might pick up additional contracts from Petronas. This experience will also be transferrable to Cadlao if and when every issue is sorted out. Ideally OXX will be the Cadlao operator and the project can start in the short term. The new OXX business strategy to incorporate field development into traditional pure exploration is taking shape.
OXX Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
