Gas production from the Edirne licence will be sold via a dedicated sales arrangement to AKSA Dogalgaz Toptan Satis A.S.
Otto has elected not to participate in the Gas Plant ownership and will pay a processing fee to the Joint Operators.
The fact OEL aren't participating in the gas plant & have to pay a processing fee, is not something we have previously been told, clearly the market focussed on this!
I would have thought OEL would want part ownership, especially as they are apart of the next phase of exploration drilling for more gas.
If Yolboyu-1 is a discovery, they will need to build a new gas plant to extract the gas from this deeper well
Again using the known midpoints to calculate the daily gas revenue for OEL:
12mmscf/d x $US7.50 x 35/100 = $US31,500/day before processing fees
Lets say 60 days online this quarter (1/4/10 - 30/6/10)
$US31,500 x 60 = $US1,890,000 - say 10% processing fees = $US1,701.000
$US1,701,000 / .93 = (AUS/USD) = ~ $A1.8m this quarter
OEL will earn enough gas revenue to fund there share of the gas exploration programme