Ann: Trading Halt, page-16

Anything is possible CW.

For example a farm out of a working interest in a specific drilling program. Typical FO parameters are "a third gets you a quarter" ... so sell a 25% to a JV partner who pays 33.33% of dry hole cost plus an amount for capital paid in (for acreage acquisition, seismic, improvements). We've now "diluted" our assets (own 75% instead of 100%) and accept less revenue and less cost

Another would be to partner with a "Drillco" who put up most (or even all in some instances) of the capital required in return for guaranteed payout (e.g. say 15% return on capital until payback and then an ORRI in the well ... say 5%). Now given up some of the cash flow (forever) in return for use of another's capital until payback return achieved.

Possible to partner with a 3rd party to supply (put up the capital for) the gas gathering system would be another. They put it in and we contract to pay for its use (this is likely framed as an operating lease ... similar to renting). Lease payments increase our operating costs for the term of the lease (which is probably 20+ years).

Nothing is free. Going to have to give something up in return for the capital put up. Dilution has many forms. Most investors only see "share dilution".

You know the saying "Fool me once shame on you. Fool me twice shale on me". Well, once fooled. Not by the the ridiculous acreage valuations, that was never a reason own CE1, but with their assessment of cost of Stage 1 and their execution of the plan - effectively ~$12M shortfall. Expectation was there would be a 2 wells ready for pipeline connection which required $10M (from memory).

Said it from day 1 ... know what you own and know the context of information provided.

If a JV is path forward (and why else would you hire a corporate advisor) best to know what we are giving up and getting in return.