12-13-2013, 01:11 AM
CAC, while I agree with you that there is a little bit of a Heisenberg cat in there (once discovered, the gas is no longer undiscovered), it really isn't custom to reward companies for undiscovered gas, and less so when the drilling of the first well are carried.
Tot buys a stake in PRL 15 as a whole, but as a potential bonus, it rewards IOC for an additional find and even pays for the first well.
It isn't that material when you compare it with InterOil's 30% stake in PRL 15 and the LNG plant, they're likely to make much more of any undiscovered gas (once discovered) in PRL 15, but it's a tacit acknowledgement from Total that there probably is a lot more in PRL 15 than just EA.
Tot buys a stake in PRL 15 as a whole, but as a potential bonus, it rewards IOC for an additional find and even pays for the first well.
It isn't that material when you compare it with InterOil's 30% stake in PRL 15 and the LNG plant, they're likely to make much more of any undiscovered gas (once discovered) in PRL 15, but it's a tacit acknowledgement from Total that there probably is a lot more in PRL 15 than just EA.