09.12.24 red sky energy limited announcement, page-61

Dear Mr Hake,

Many thanks for drawing the ROG comment to my attention, clearly you were correct and I was in error.

As to your comment

"namely if the farmin was invalid as pxa claim, how can it be that an agreement between pxa and red sky make it valid. conversely if it was valid then why the dispute and why the need for a "further agreement between red sky and pxa.
all very curious indeed."


To use your terminolgy "how can it be that an agreement between pxa and red sky make it valid."

Answer,

If parties are in dispute (as in this case)they can agree on terms of settlment of the dispute,such agreement is naturally reduced to writing and reflects the new situation, In such agreement it may well say something like

"PXA agree and accept that CTP acted lawfully
and were entitled to bring ROG in as a JV
partner.

PXA agree and accept that ROG is entitled to
attend and contribute at the OPCOM meeting and
exercise a vote in what ever manner ROG
considers appropriate in the circumstances"

It is not unusual to have the agreement made "without admissions", the purpose of the agreement to provide settlement to the dispute and a framework (or clarification of the initial agreement)and a basis for moving forward.

As to the second part of your question.

"conversely if it was valid then why the dispute and why the need for a "further agreement between red sky and pxa.
"

Answer,

BG (PXA) may welll have just been flexing its muscle and seeing how far CTP would go in a fairly cheap but important dispute.

Would CTP send ROG packing and bow to the might of BG (PXA) or would CTP be prepared to go all the way.

The answers to all those questions were clearly answered. No doubt BG (PXA) now views CTP with a degree of respect.

As to the second part of your question

"why the need for a "further agreement between red sky and pxa."

Answer,

See the answer to the first question.

In conclusion

Many thanks for your stimulating and intellectual postings, albeit it with purported diagnises of peoples mental state, I presume that was done without the benefit of any medical degree, or training.

Should we not chat before the New Year, may I take this opportunity to wish you, your family a very prosperious 2010.

CB