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Gold/Mining/Energy : Montello Resources -- Ignore unavailable to you. Want to Upgrade?

To: JP who wrote (4161)	3/17/2000 4:18:00 PM
From: ddl	Respond to of 4256

What it means according to the guys over at the O&G thread is... Agreement says "Under the terms of the Joint Venture, the Private Company will pay 100% of the costs to drill, log, case, complete and equip the Test Well to earn 50% Working Interest After Payout (APO) in the wellbore and 50% Working interest in the entire section." Means = They get 50% after payout of the costs to do what they agreed to do. They get their money back first subject to... "Montello Resources Ltd. will be in a sliding Scale Royalty position Before Payout (BPO) in the wellbore and 50% Working Interest After Payout (APO) and retain a 50% Working Interest in the entire section." MEO will get some money while the driller gets paid back his investment, on a sliding scale which is not defined. I'm in on another O&G play that started 3 years ago and the drilling of the 1st hole is just the beginning. Then there are engineering/study/3D seismics, evaluations, and additional test holes to be plunked down before they start paying off. It's long process, but worthwhile if you hit "Texas tea".