africa oil announce farm in, page-9

Red Emporer Release has more financial details,

Cut and Paste from RMP ASX annoucemnet made today.

Red Emperor (Farmee) has entered into a Heads of Agreement with Africa Oil Corp and its 100% owned
subsidiary Canmex Holdings (Bermuda) II Ltd (Farmor) to earn a 10% participating interest in each of the
Dharoor Project and the Nugaal Project (Transaction). The Farmor has a 65% interest in each of the projects.
The Farmee will first earn a 10% interest in the Dharoor Project by paying 20% of all costs related to the drilling
of one exploration well on the Dharoor Project. The payment of 20% of related drilling costs will apply for the
initial US$25 million of gross costs only and thereafter the Farmee shall only pay 10% of all related drilling
costs.
The Farmee may, at its own discretion, exercise a right to increase its participating interest in the Dharoor
Project by advising the Farmor in writing on or before 31 August 2010. The Farmee will then earn a 20%
participating interest in the Dharoor Project by paying 30% of all costs related to the drilling of one exploration
well on the Dharoor Project, plus a payment to Africa Oil of US$1 million for the reimbursement of prior
expenditure. This payment is due on the spudding of the first exploration well in the Dharoor Project. The
payment of 30% of related drilling costs will apply for the initial US$25 million of gross costs only and
thereafter the Farmee shall only pay 20% of all related drilling costs.

So as you can see, the financial commintment by Red Emporer, is $5 Million US, up to the first $25 Million of drilling cost and then 10% there after.
And increasing to $8.5 Million US, and 20% there after, if RMP decide to increase stake to 20%.

So all in all not a bad commitment, and for those jumping the gun, considerably more than $2.8 million.

Cheers

jamit01