Replies to post #6659 on Hero Technologies Inc (HENC)

[Hamilcar54]

I checked again just to be sure, I made a mistake: it's actually for the complete 6 well program. From the henc 10K:

"In the event any well drilled in connection with either the initial or optional drilling programs is commercially viable, and Terra Nova elects to complete such well, Terra Nova is entitled to a preferential recovery of one hundred percent of the costs it has paid to drill and test that successful well. Terra Nova is entitled to 80% of production from that successful well until either that successful well has ceased production or Terra Nova has received net revenue equal to the reimbursable costs it has incurred."

But like you said, it doesn't really matter since we all bet on both horses and if they hit, we all win big indeed !

[Hamilcar54]

Sorry, I misinterpreted your question in answer to a previous reply.

Yes the answer is correct: TGC will end up owning more acreage after the farmout is complete, this ownership is for the complete licenses so not just for the wells. From the TGC presentation:

"Current farm-in agreement with Holloman and Perseville:
Holloman and Perseville are required to transfer an aggregate
5.83% to Terra Nova on both Petroleum Exploration Licenses
(PELs) for each well drilled to a maximum ownership of 49.83%."

You will find this info as well in the filings for both companies. HENC's ownership will drop to 28% on both PEL's after the farmout is complete.