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clock Created with Sketch. 07/02/19
16:59
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Originally posted by Lazarus65:
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I think that is the great unknown for all of us mug punters. Essentially, how long is a piece of string? From my research it would appear that a typical FO consists of 3 components.may give up 70% WI to a farminee, in exchange for 143% costs of drilling up to dry hole or even completed flow test for a minimum number of wells. In this type of case the 30% WI retained by the farmer is essentially on free carry up to the agreed end point (ie dry hole or completed flow test). There is usually an agreed cap here too. Any expenditures beyond this agreed point are typically done on a WI basis.
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if we use winx as example, 80% interest trade for a free funded well circa $15m ,for a 400mbbl reserve, 70% our 2.2b bbl should be equal 5+ times of $15m per well, which means $75m? on this logic except 3 wells, we should cash in $20-30m ?
(20min delay)
