Ann: TTE US Project Update, page-9

From my understanding, they forfeited 60% of their W.I. to retain 40% such that 20% of all drilling activity is paid for by their partner and TTE pays 20% of the drilling costs.

There was a mention of a prospect fee but the amount wasn't mentioned and in the typical TTE fashion, whenever that occurs, it means its a crappy amount. Maybe I will send an email to the management to ask about it but Im not that bothered flogging this dead dog anymore and wasting time.

Copy of the relevant bits of the ANN below

Titan has recently finalised the terms of the Participation Agreement and Joint Operating Agreement with new partner Southern Resource Company, et al. Under the terms of the agreement Southern Resource Company, et al will pay Titan a prospect fee and will drill the Perry-1 well, carrying Titan for a 20% Working Interest (W.I) through the tanks. Titan has elected to participate for an additional 20% and will now hold a 40% W.I in Perry Ranch with Southern Resource et al holding the remaining 60%.

Operator, Mueller Exploration, Inc. has provided a newly designed turnkey drilling & completion AFE of US$1.136m, of which Titan will pay approximately US$227,000. Given the locations close proximity to the Gulf of Mexico, operations are expected to commence after the hurricane season in early Q4, 2014.