TSXV:ART.H - Post by User
Comment by
Baxter4on Mar 08, 2012 4:40pm
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Post# 19645944
RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: QUIET
RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: QUIET There are some other diffrences between LFD and VST. I believe LFD had a 40% royalty rate, but I'm not positive if that was on the full 40% ownership or the 20% they picked up for the higher rate. Even if it applied only to half, it would still work out to 25% royalty. Vast had a 15% royalty rate but with the sale of 12% to Niko, I'm not sure if the remaing ownership is at a royalty rate of 10%, 15% or something in between.
Secondly, the QD has a suspended well which could be re-entered at some time in the future after the geologists have finished pouring over the data. This also gives formation depths which can be used to correct the seismic readings.
And finally, oil zones at greater depths are usually more prolific. greater cost but greater returns if it strikes.
So I can see it going for double what your thinking, 50 cents in the miracle case. 32 cents based on the crooks at LFD.