Mart Resources Inc MAUXF

OML 18 SPV partners

[wallywill]

From what I can gather, the consortium in OML 18 are: Nigerian National Petroleum Corp with 55% Erotron, which is a consortium made up of Mart Resources, Suntrust Oil and Mid-western. The deal also means other companies who are using the Nembe Creek Trunk line will have to pay to use it. Hopefully the attacks on this pipeline will cease but it is Nigeria after all. GLTA Wallywill

[mjh9413]

Thanks for input but Notore (which sort of explains that funny Consortium name they used) is definitely part of the buying group and I see MMT themselves saying they will have almost 10% of 45%, at least that is how I read it. (viz.,|....Mart will become the holder of an indirect working interest in OML 18 of approximately 10% through its existing ownership of shares in a holding company ("

[ValuInvstr]

The PR does not say 10% of the 45%.  It says 10% indirect interest in OML 18.  Thus 10% of the total.  

[mjh9413]

Well my initial post on the NR asked the question what does it mean in terms of what MMT is seeking here but to pay 1/10 of the purchase price for 45% of the total field interest must mean, eh, 10% of 45%   I don't know but that is how I read it. The Consortium is ending up with only 45% of the interest in the field and the other members are presumably putting up the other 90% of the

[ValuInvstr]

I think you are confused.  I read it that they are paying 10% of the total price for a 10% working interest.  The consortium will own 45% and the other party 55%.  They did not say what percentage of the consortium they will own, but you can do the math.     

[macluver]

Agree totally. Mart has an indirect 10% interest in OML 18 - not 10% of the 45%. Its percentage ownership of the Consortium is such that it works out to owning 10% of OML18. The NR says "Mart will hold an indirect working interest in OML 18 of approximately 10% through its indirect ownership position in Consortium SPV"

[goldiehawn]

10% of the entire OML18 not 10% of the Consortium

[radcat]

Then Mart's % in the 45% Consortium would be 10% / 45% = .222222222 or 22.22% leaving the remaining 22.78% of Consortium % for Western & Sun, making their % stakes a tad larger. Do I understand that correctly math whiz's? 

[radcat]

When you think of it, it has a nice 50/50 ring to it. Just like Umusadege once development expenses have been clawed back. Seems to me we have pretty much the exact same type of agreement @ OML-18 as we do at Umu.

[mjh9413]

Now that I cannot agree with as MMT and its partners (midwest, whatever) for one thing are just 50% of the Consortium! That much is clear. And the other 50% of the consortium is I believe Notore, a big fertiliser company. Of the total purchase price only Notore could possibly finance the over $1/2billion by themselves, MMt has put up ~$134MM and its partners put in almost $1/2B, for the

[macluver]

Not quite right. Mart holds a 22.22% ownership of the consortium which gives them an indirect 10% share of OML18. The remaining 77.78% of the consortium (Western, Sun, et al) has an indirect ownership of 35% of OML18.

[wallywill]

That is what I came up with too.

[goldiehawn]

How do you come up with 22.22% of the Consortium? I agree with 10% for the entire OML18 btw.

[radcat]

How I came up with that number is, if Mart and its consortium bought 45% of OML-18, and Mart will own 10% of the total Block, you divide 10% total flied ownership by 45% Mart consortium =.222222 or 22.22%.  45% Mart consortium minus 22.22% equals 22.78% for the other Mart Consortium members. This doesn't include the 55% NNPC owns. That's the math as I see it.  

[macluver]

Again not quite. The whole consortium has 45% of OML18 with Mart telling us that their ownership percentage in the consortium gives them an indirect ownership of 10% of OML18. This leaves 35% (45 - 10) of OML18 for the remaining partners of the consortium. Marts 10%  is 22.22% of the total part (45%) of OML18 that the consortium has purchased.  Therefore the remaining partners percentage

[wallywill]

Macluver calculation is how I see it as well.

[goldiehawn]

Then the $13million Mart paid for the 10% makes no sense

[wayfrt12]

GOLDIE It was 134 million