ADL Acquired 20%+ in 4 oil Wells?26 Jun 2019 15:35
Hi Guys,
Did anyone notice the option, ADL has regarding the Betun-Selo KSO.?
Quick re-cap:
"Andalas has agreed to undertake a work programme and provide operating services and personnel (Services) to PT Petroenim Betun-Selo (PBS), the operator of the Betun-Selo field, on the terms of the Services Agreement. PBS has agreed to pay for the Services by paying Andalas 90% of the proceeds of sales of cost hydrocarbons and profit hydrocarbons derived from incremental production at the KSO. until such time as the funds and services provided by the Company have been repaid in full."
"Work Programme expected to cost up to USD$650,000 to be financed by an immediate £500,000 (net of fees) drawdown from the (£2M) Convertible Note"
So ADL, carries out the workover, funded by £500K drawdown from the £2M CLN facility. All the money paid back to ADL through 90% of the increased bpod profits.
Now here's the option:
"PBS has granted Andalas an option to acquire a participating interest in the Betun-Selo KSO. This participating interest will provide Andalas with an interest only in any future incremental production from the Betun-Selo KSO"
"The option may be exercised by Andalas at any time up to 6 months after completion of the 4 well workovers included in the Services"
" On exercise of the option, any amount owing to Andalas shall cease to be repayable. Andalas will be granted security by CAV in respect of sums advanced in respect of the Services Agreement."
Legal terms for "participating interest":
"A holding of 20% or more of the shares of an undertaking is presumed to be a participating interest"
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