Charles Taylor Group Plc V.MQL

Alberta Oil Sands - commitments ( Note 11)

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From AOS latest financial statement. - How do these substantial drilling commitments factor into the deal? 

11. Commitments
The Company had the following commitments as at March 31, 2016: a) The work commitments for Namibia (Note 4) are 1) USD $6 million incurred in acquiring geological and geophysical data over the first four years (“initial term”), the initial term ends on December 3, 2016; 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