hartley's report 30th nov, page-4

Peak will clearly not make it's IPO now that it's BoD have endorsed RAI's takeover (of Peak) and they advise other Peak holders to accept in the absence of a better offer. But an IPO by Peak was stated as one of the central conditions for the farmout. This seems to mean that SUR only need to farmout the first 7.5% of its 50% (leaving SUR with 42.5% for first & subsequent wells).

It appears Peak committed the first funds to SUR before its IPO was cancelled. If this is true (I understand it is) then SUR could reconsider further selldown of its equity, unless they really still want to. But they won't need to decide until AFTER drilling of the first well. Given the cash they now have in the bank and the fact that they'll know the outcome of the first well maybe they'll think again about farming down further? I wonder what the chances are?