Ogo, you said TNK-BP deal in Brazil had the potential of being worth $1B if all milestones were met,
TNK-Brasil has provided HRT O&G with a Letter of Credit in the amount of one billion dollars, and yes HRT had to carry TNK in the first 175 million dollars of investment beginning January 2012. The Milestone deal was for an additional payment of US$250MM. If you understand this as a reduction of purchase price, it would be reduced to US$825MM.
Farm Down potential of 55% would be R$7,57/share (825*2,23/45*55/297)
In order to conclude the purchase of the exploration rights for the 45% of the 21 blocks in the Solimoes Basin,
TNK-Brasil has provided HRT O&G with a Letter of Credit in the amount of one billion dollars,
to be paid in 5 installments over a 2 year period, as per the Farm-In Agreement signed by the parties on October 31, 2011. HRT O&G and TNK-Brasil have also signed a First Amendment to the Farm-In Agreement, pursuant which HRT O&G agreed to be solely responsible for costs incurred on the Solimoes Basin campaign during 2011 and
to carry TNK-Brasil in the first 175 million dollars of investment beginning January 2012.
TNK-Brasil agreed to pay up to 250 million dollars to HRT O&G when five milestones have been reached
(payments are due to HRT O&G upon the achievement of individual milestones). These five milestones are (i) completion of an Extended Well Test, (ii) accumulated production of 2.5 million barrels of liquids, (iii) gas monetization of at least 500 thousand cubic meters per day by means of one or more gas off take agreements, (iv) sharing of certain infrastructure, and (v) certified 2P reserves of 500 million barrels of liquids.
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