Ann: 80% Ownership of Olympic Domain Tenements Achieved, page-193

@WiffaSniffa

In addition to being quite condescending, I think your 30/1 post misses the mark in a number of respects. Feel free to correct any of the below as I've done my best to interpret your rather convoluted post for my benefit and the benefit of other readers.

1. The Farm-In agreement is not publicly available as you have suggested. Rather, as I suggested in my 29/1 post, a summary of the salient terms of the agreement is available. Namely, the company announcement dated 07/03/18 and titled "Execution of Farm-in Agreement to SA Projects" provides an "Overview of Certain Key Terms of Farm-in Agreement" on pages 4 and 5. You are kidding yourself if you think a 2-page summary constitutes the entire document, which is likely to run for tens of pages.

2. We know very little of the actual terms of the JV agreement beyond this rather brief summation (and snippets in subsequent announcements about 80:20 expenditure ratio etc):



Again, a typical JV Agreement would likely run for tens of pages and all we have to work with is a few sentences.

3. You continue to speak of some mechanism whereby Olympic Domain will suffer 'equity dilution' in the event they cannot meet their expenditure requirements under the JV. More specifically, by my reading you have suggested that the dilution they would notionally incur is equivalent to:

[their portion of expenditure which they are legally required but fail to contribute under the terms of the JV (125K in your example)] / [the value of the 7 tenements which form part of the JV (you put forward 2.5m as the original valuation)] = percentage 'dilution' incurred (125K / 2.5M = 5% 'dilution' in your example)

I now also understand that you are putting forward CHK's market cap as a proxy for the value of the farm-in tenements post drill results (though you have also recognised the obvious pitfalls of this method) hence you suggest that they would incur less 'dilution' in the event CHK's market cap increases. On what basis have you derived this formula? Are you suggesting that this is standard practice for industry agreements of this kind? Because that certainly has not been disclosed as a term of the CHK / OD agreement. I am pretty interested as to whether this is something you can substantiate or whether you have concocted it yourself.