Quadrant Energy acquired by STO, page-9

Cosmo,

Here's a thought, do we have preemptive rights on the bedout acreage. CVN could theoretically have a play if we can line up another suitor to back a more aggressive program.

I'm pretty excited with the forward plan but I would like a more aggressive program. The discovery is significant and we should be looking at getting long lead items in place given the current oil market.

I'm not sure how tight the deal is and whether other offers were fielded by other parties. I'm of the opinion that quadrant has a lot of contingent liabilities coming up with asset closures given their maturing fields and hence the desire to sell rather then spend more on appraisal/exploration or abandonment.