Post by
taal on Mar 04, 2021 6:43am
Questio ??
Let's assume that Fronterra decides to drill both Kawa 1 and Makarapan 1 this year on their own...Assuming the total cost of each well ( not certain on the cost) Is $40 million each ..total $80 million....What would Fronterra portion of that total cost be and what would Cgx cost be .....with percentages and current agreements that are currently in Place??
Comment by
waitingstill on Mar 04, 2021 7:36am
CGX stated estimated costs for both wells is $90mil (I believe that is why FEC put $90mil as their upper limit for expenditures). FEC currently on the hook for 33 percent Plus 8.5 percent carry of CGX which is 41.5 percent while CGX on the hook for 58.5 percent.
Comment by
nowanzen on Mar 04, 2021 9:57am
CGX has a tangible assett, namely the 200 million recoverable costs spent to date. As Fec is the major shareholder, does this not add to their bottom line and relieve any further investment costs? I understand it will require incoming revenue to offset againat, but eventually there would be payback... Thoughts?