RE:this is very confusingCEA pays 10.5 mill towards these wells...they get 80% of the net profits until they get 180% of their investment back then it converts to a royalty.
sounds great to me
"Under the terms of the agreement, the Third Party will pay up to $10,500,000.00 for commitments that include paying 100% of the costs incurred to drill, frac, test, complete and equip up to seven (7) wells on the project lands. The Third Party will be entitled to receive 80% of the net profits generated by the sale of petroleum substances from the Phase 1 wells and their drilling spacing units. Once the Third Party has recovered 180% of its investment back from the 80% net profits interests, the Third Party will convert from its net profits interest to a non-convertible 5% gross overriding royalty in the Phase 1 wells and their respective drilling spacing units."- from the vux news release