Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
My understanding is that the tax break starts with the granting of an exploitation concession over teh portion of the exploration permit where the discovery was made. That's why the like of SDX have these small areas all over their exploration acreage.
In the case of gas, not only volumes have to be proven, but also a commercial contract must exist for the sale before said Exploitation Concession can be granted (by ministry), for a period of up to 25 years, the first 10 of which are indeed CIT exempt.
SDX got great value from the receivables they bought when they took over the Egyptian assets from Circle Oil back in the PW days. I would certainly hope they use that example to extract as much value as possible from a buyer this time around, accepting the degree of risk associated with the current state of the Egyptian economy.
Anyone that believe sub meters sands are continuous over square kilometers has really not understood the basic geology of the area. These are turbiditic sands and the thickness directly relates to the size of the event. The large sands encountered offshore by Repsol that Chariot are developing are dozens of metres thick EACH.
The meters sands encountered in Guercif looks more similar to the SDX stuff, plenty of sands to go after but individually small as not extensive laterally. That's the disadvantage (advantage some might say?) of limited 2D seismic coverage vs the 3D data used by Chariot and SDX. It is impossible to say that the sands in MOU-3 are indeed the same as in any of the other 2 wells.
Keith - I have no problem with a Jurassic carbonate formation being vuggy. Putting the same geology at such a shallow depth at a different well, with a different geological target, makes no sense. Unless the predrill interpretation was mightlily off-target.
What's the story with vugs? These requires large carbonates formations, nothing like the deeper marine depositional environment (turbidites+shales) that's been talked about for the gas accumulations in Guercif. Did I miss something??
SDX has not used the Star Valley rig for their last wells and have already said they've been pleased with the ONHYM H525 rig, so whatever is going on at Predator/Star Valley has no impact on any drilling plans for SDX in Morocco IMHO.