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Gold/Mining/Energy : American International Petroleum Corp
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To: Cathi Wierzbicki who wrote (4209)10/27/1997 11:22:00 PM
From: qdog  Read Replies (2) of 11888
 
What I mean, I think, if you assume this to be a risk, then you tier a deal to reflect that risk. If the standard is to value it at $.50 per barrel now, then tier your deal to say, "OK , let me lock in the high side of probability at the lowest rate". In other words, we still don't know, I'll render 40 mil up front, and if we hit, then I'll pay you .50 cents/ barrel for the fact, afterwards. Win-win IMO.
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