MoneyI'm trying to figure out monetary commitments once the lease cancellation funds are released. The following is from the last interim financials. Can anyone comment on whether I am interpreting this correctly? The way I read it, there is at least $12.6 million that has to go to Namibia exploration as AOS has guaranteed 10% of the contract value. Is this correct?
The work commitments for Namibia (Note 6) are
1) USD $6 million incurred in acquiring geological and geophysical data over the first four years (“initial term”);
2) USD $60 million for exploration well within two years after the initial term; and
3) USD $60 million for an additional exploration well within two years after the first two terms expire.
Ten percent of the Work Commitment will be guaranteed by Alberta Oilsands which remains subject to terms and conditions to be agreed to between Alberta Oilsands and the government of Namibia.
In addition, Alberta Oilsands has agreed to pay approximately US $130,000 per year for annual rental payment and for the purpose of the training and education of Namibians.