Normal
3 points concerning the RNS1. Note that EME suggests that some of the wells may have been shut in for part of the month. I don't personally feel that we can get a proper view on flow rates until we see the May or June flows.2. Though not of interest to ADI holders (yet), it has still to be clarified whether revenues are shared in the cost sharing ratio for each well until full recapture of costs for that well.3. Of interest to ADI holders, it has still to be clarified whether royalties only become payable for the production from a well after the costs of that well have been fully recovered out of production income.Factors 2 & 3 make considerable difference to initial cash in-flowsFactor 2 might mean that the new JVP will recover his costs out of production income before the existing JVPs start to receive their proportionate shares (although the farm-out agreement might not have the same terms).
3 points concerning the RNS
1. Note that EME suggests that some of the wells may have been shut in for part of the month. I don't personally feel that we can get a proper view on flow rates until we see the May or June flows.
2. Though not of interest to ADI holders (yet), it has still to be clarified whether revenues are shared in the cost sharing ratio for each well until full recapture of costs for that well.
3. Of interest to ADI holders, it has still to be clarified whether royalties only become payable for the production from a well after the costs of that well have been fully recovered out of production income.
Factors 2 & 3 make considerable difference to initial cash in-flows
Factor 2 might mean that the new JVP will recover his costs out of production income before the existing JVPs start to receive their proportionate shares (although the farm-out agreement might not have the same terms).
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