30 % working interest

less X factor of 23% and 8% base royalty (31% total) 

30% x 0.69 = 20.7% after royalty interest to PDQ.

heres a reasonable scenario for Loto-1:

if they hit 3k bopd on a future successful well, it is worth 621bopd net.  Assuming they drill 2 appraisal wells (could be done ASAP as they are already permitted), that's about 1,850 bopd.  At $70 net backs, that's worth in the neighborhood of $45m a year.  On a conservative flowing barrel valuation that's about 45,000 x 1850 bbl/d = $80m vs current market cap of about 45m.  E Rey time they take a shot at this, it ousts them between $3-4m.  Pretty reasonable risk reward ratio.

 

plus you get some blue sky potential with Dorados.  Also plenty of cash and Tacacho as a long term potential.