RE: Heron Asset Value $300M+ v Mkt Cap $19M - Gobi Perspective5 Aug 2025 12:24
“In my opinion any farm in is likely to be around 50% for up to $60m free carry on drilling or 25% for $30m of free carry dependent on the number of wells required for MATD to be self sufficient on their share of the PSC.“
Thanks Unnd, this sounds typically reasonable and sensible to me, albeit I’ve no experience of being invested in a company where this has happened so the %s are a shot in the dark (to me).
But aside from the specific %, the underlying principle is very sound. We have the oil, others have the resources so we trade one for the other. Getting any income through the door on a free carry would be great. *If* such a deal is In my opinion any farm in is likely to be around 50% for up to $60m free carry on drilling or 25% for $30m of free carry dependent on the number of wells required for MATD to be self sufficient on their share of the PSC. (which presumably a farm in partner would also want to be satisfied about).
If we can’t find a partner the company goes under, but I DONT think that will happen, rather the terms will be reflective of the balance of power.