'johnwgrant' pid='33199' datel Wrote:I loved the conference call. It provide much needed clarity. Here is my understanding of the table that Hession shared with us...
P50 Resource Gross Net(after PNG gov't takes 22 %)
3.5 --> 5.4 tcfe $.60/mcfe $.77/mcfe
5.4 --> 6.5 tcfe $.80/mcfe $1.03/mcfe
Above 6.5 tcfe $1.00/mcfe $1.29/mcfe
I saw no indication that the price per MCF was 'weighted'?
He stressed that this was uncapped -- IE, if they certify 12 tcfe (P50), then they are paid on the full 12 tcfe....
I also understand that there are 2 appraisals - 1 after the 3 appraisal wells and then a "wild card" (date of IOC's choosing) when they get a final appraisal and "true-up" payment. (Hope I understood this correctly!).
Go InterOil !!!