sc 54 farmout, page-3

My understanding is that NDO calls existing jv participants together, explains the farmin terms requested by major, and when all the horse-trading is done all jv partners agree to drop by a pro-rata of their existing interest until 50% can be released to the major. Only one major would farmin. If KIK for example had another competing proposal (farmin partner) to bring to the table that would be weighed up as well. But only one deal would be done, NDO's or KIK's, not both. That's what I think based on what I've seen of these arrangements in the past. Other opinions welcome.