Ann: MEC Resources Ltd Placement, page-27

Att  Avoc  Wimslowbucks Vcubitt


Talk about stating the bleeding obvious MEC supports the decision made by Advent Energy to enter into the agreement with RL Energy.
Of the 3 directors of Advent two are on the board of MEC Goh Hock and Deborah  Ambrosini. Even the most ardent supporters of the current MEC board would be having second thoughts if this wasn’t the case.
The words surrounding the RL Energy farm in seem to be a bit fluid to say the least. The options seem to favour Greg Channon and his associates (whoever they are).
Extract from MEC release - “A term sheet has been agreed between Asset Energy Pty Ltd, Bounty Oil and Gas NL (existing PEP11 JV partners) and RL Energy Pty Ltd whereby RL Energy Pty Ltd may earn 10% in PEP11 by funding the completion of the 2D survey up to a capped amount. The term sheet also contemplates RL Energy Pty Ltd exercising an option to acquire a significant area of 3D data over PEP11 to earn a further 50% in PEP11.   
Further the agreement also considers an expedited 3D seismic acquisition option, whereby RL Energy will expedite acquisition of a larger scale 3D seismic survey in PEP11 in an early timeframe, and in lieu of the planned 2D seismic survey. RL Energy shall earn 60% working interest in PEP11 should it complete this expedited 3D Seismic Option”.
How much does MEC then have to take on as residual cost -we just dont know and we are certainly not being told !!
Some of the posters on Hot Copper seem to have been confused, judging by some of the postings regarding 3D Seismic Survey- This will require going back to NOPSEMA again for the required approvals. Judging by the time it took to get permission to proceed with the High Resolution 2D Seismic Survey we will be lucky if we a drill rig on PEP 11 before 2021.How much will drill rigs cost then ? And the gas supply crisis will be long gone
RogerD