a penny for your thoughts, page-40

Waymax, I believe the first-stage farmin entitles Peak (RAI) to a 7.5% equity in the whole L20/50 concession. SUR continues to hold 42.5% with CVN the remaining 50%. Peak is not entitled to any more than 7.5% because they (endorsed by their own directors) agreed to be taken over by Raisama prior to the listing actually being completed. I think they only got away with the 7.5% because they committed the funds to SUR before the takeover was finalised. On a technicality SUR probably could have pulled the plug entirely on the farmin because there was a condition that was not satisfied, that Peak must raise $X (forget the number) in an ipo. That never happened. However, it seemed to be mutually acceptable to both SUR & Peak to do the 7.5% part and not quibble over legal technicalities. So no conspiracy!

We need to note that the 2nd well is testing a completely different structure at a different location in the basin so the duster at the first well has no bearing on the outcome of well 2. SUR will be paying it's share of well costs on heads-up basis, ie 42.5% of costs, which is concerning the mkt atm. However, a discovery and everybody will be happy again.

On the face of it the Euro project continues to improve its appeal with the N. African situation now having supply implications for Europe. All guesswork until signatures hit paper of course.