Ann: Farm in agreement for seismic and well in Ke, page-5

re: Ann: Farm in agreement for seismic and we... Thanks for reply Captn

'You are giving 60% of something that may have little or no value away in order for someone to take the exploration risk for you.'

Agreed, taking away risk and costs is paramount and is the reason for it. And yes, their could be nothing there, but if there is, it could be perceived as a bad deal....unknown. At least there is no expense to FAR, I'm just wandering what Milo are contributing $$ wise to obtain 60%

'This block cost FAR or Flow next to nothing.'

I think that is irrelevant, its what its worth, not what you got it for.

'Look at it from the operators point of view. They will be giving away 40% for pretty much zip if they find oil on the first drill.'

Good point, I didn't consider it from their point of view. But they are hardly giving away 40% when they didn't own the lease, that's the fee for being able to access L6.

'This is they way junior O&G companies manage their cash and risk.'

Agree 100%, just curious of the %%s and costs to Milo.

'I like that the onshore is split away from offshore. It should diversify the risk of the block.'

Agree 100%

'Expect similar or worse terms and payment or costs incurred to date for the offshore part.'

Terms will be worse of course, due to the nature and costs of deep sea drilling

Thanks again for your thoughts Capn