'jdeo1969' pid='40288' datel Wrote:

Put, if AD does not communicate, I believe the get the TCF bonus of $100 million per, but not in the higher TCF bucket.  And yes, they still own a percentage of the gas they find, but it is incrementally more of a payout if AD "communicates."  Someone throw a two way radio into that pit please.

That $100 million exploration bonus has been reduced to $65.4 million.  From the transcript:

"The exploration bonus in the event of a discovery will now be $65.4 million per Tcf for amounts above the first Tcf

discovered."

'Brew Swillis' pid='40290' dateline='<a href="tel:1395959 Wrote:

'jdeo1969' pid='40288' dateline='<a href="tel:1395957 Wrote:

Put, if AD does not communicate, I believe the get the TCF bonus of $100 million per, but not in the higher TCF bucket.  And yes, they still own a percentage of the gas they find, but it is incrementally more of a payout if AD "communicates."  Someone throw a two way radio into that pit please.

That $100 million exploration bonus has been reduced to $65.4 million.  From the transcript:

"The exploration bonus in the event of a discovery will now be $65.4 million per Tcf for amounts above the first Tcf

discovered."

Was just going to post that Brews. In the agreement the resource payments and FID, first LNG etc are all prorated based on the new agreement as follows: 40.1/61.3 = 65.4%. So as Brews says the PRL15 resources above 1T which are not in communication with Elk or Antelope get paid at $65.4 million. The bonus EA resources are paid on the same rate scale as in the original SPA, but then the resulting gross amount is multiplied by the same 65.4%.

The good thing explained in the call is that the carry on the 3 appraisal wells remain at 100% as the original SPA (100% carry by Total up to $50 million each) and the exploration well (likely Ant Deep and is capped at $60 million).

So drill boys

'cybersssss' pid='40291' datel Wrote:I think it comes out to .07 cents per mcf if it does not communicate. Not great.

I agree but Hession would say it is better than nothing which is what he says "undiscovered" gas is worth. The bright side would be it is $70 Million for 2 TCF and $700 million for 11 TCF.

'jft310' pid='40279' datel Wrote:

My drilling partner friends who made net 12.5 times theit initial investment have stated this. They think Antelope and antelope deep will communicate. They further think that over time that big formation on the slides will prove over time all these formations will connect which does not mean they all comunicate.

Further at the IOC road show it was said but they could not say that Antelope and Antelope Deep communicated but they pre drill thought they would. They have seismics that are not on the slides. This does not mean they will communicate.

I leave it to others to debate the geology. I await the drill bit and the tests and then we will know one way or the other. We get paid either way . Just more if they do communicate.

No, JFT.  We have no possibility of getting paid if Antelope and Antelope Deep are in communication.  Unless Antelope Deep is not deep, or the laws of physics have been repealed and gas is no longer lighter than water....