farmout to red sky energy, page-46

Great news.

All the dribble about leaky ships over the past few days has been totally blown out of the water by this left of centre development.

My confidence in JH to keep pulling rabbits out of the hat has increased ten fold.

IMO the development of CTP acerage will now be at an accelerated pace.

For BG there has also been a derisking of investment. Im sure they are well aware of the new players. Under JV they may have had to approve proposed new partner which could have accounted for some of the recent hold up.

The reserve premium $5M per 3P tcf on the broadacre is massive. Really spells out 1) That BG have a really good deal that could be onsold if need be 2) That JH is a good negotiator and 3) That terms of any future farmin will only be better.