Where did you pick that from Camry. Careful you might get a...

Where did you pick that from Camry. Careful you might get a smelly finger.

Discovery Payment of 5 million US in the event of each discovery up to a maximum of 3 per permit.

Further

The right to receive a further 5 million in respect of any discovery, Shell applies for either a production licence or retention lease or spuds an appraisal well

and

A 1% overriding royalty.



Have a look at this page.

http://www.cottoilandgas.com.au/wa-460-p/

Salient points:

?Mapped Palta prospect could hold 13.5Tcf
?Shaded area WA 460-P could hold 2.4Tcf

As I understand it it infers that the palta prospect could contain as much as 11TCF in WA 384 P.
1% oor = 7% - 10% interest.
7% of 11TCF = say 700bcf @ 50c thousnd in ground = 350m.

If (we dare to dream)there was 11 TCF that would support a stand alone LNG plant.

If a commercial discovery was made of that magnitude and using a value of 50c per thousand in ground then we are broardly talking 350m.

OXX has 225m share heads and partly paids so:

350 :- 225 = $1.55 per share.

5m plus another 5m pretty much up front. Bit of petty cash to keep the piggy bank topped up.

Plug in whatever numbers you like but a discovery at Palta 1 would cause quite a stir.

OOR's in a sense are great. Nobody is going to ask you to contribute. Shell would want to buy the OOR out, or it is (I believe), saleable to a third party.

Have a look at the WHN thread. Palta 1 is causing some interest over there.