EARNING TERMS

Sansum is offering three variously graded portals of entry for a stake in the prospect.  An acquired working interest (33.33%; $933K), mix of farmin/partnership (49%; $1.384 million) and a farmout (60%; $2.2 million) offer varying financial commitment and earning terms which include all land and facilities currently in possession of Sansum.   

  1. Acquired Working Interest.  An invited partner acquires a 1/3 stake of current assets for $200k while simultaneously committing to fund 1/3 of the pipeline ($533k) and 1/3 of a slickwater frac’ ($200k).  TOTAL EARNING INVESTMENT = $933k. 
  2. Frac’ Farmin to Earn + Commitment to Tie-in.  A farmee agrees to earn funding the slickwater frac’ and simultaneously participates for earned share of tie-in cost.  Farmee pays 100% of the slickwater frac’ ($600k) to earn 49%.  Cash calculation: Farmee; $600k (slickwater frac’) + $784k (pipeline construction) = $1.384 million. 
  3. Slickwater Frac’/Tie-in Farmout.  Farmee funds the slickwater frac’ and 1-19 tie-in ($2.2 million) to earn 60%.