Hi all, This development is not really that surprising. AEP...

Hi all,

This development is not really that surprising. AEP obviously would have felt put out by having to up their original farm-in terms. Since their first discussions with AJQ, the POO has fallen a lot further, the medium term outlook has lessened as well, energy fund redemptions are at an all time high and banks have all by cut off the sector. So its very easy to see why AEP are wanting to push back; hell, I would. And just to speculate a bit further, it wouldn't surprise me in the least if the negotiating style of one or two AJQ directors muddied the diplomatic waters of the proposed JV.

But, with these announcements, it obvious the parties are not getting along or AEP really wants to pull out/materially renegotiate. The issue cited by AEP is surmountable if the parties want, and the solution offered by AJQ is reasonable but not accepted. So we have an embarrassing, public impasse. I truly hope they can arrive at a solution within the next 24 hrs (which numbskull thought that a Saturday would be a good end point for a DD contract??), yet this public dummy spit doesn't give me much hope.

Unfortunately this also means more legal fees for the H&G director...another $1m+ year coming up?

Bugger...I was kind of banking on the $25k from the T/O to pay a small % of Mrs Kfann's attempt to materially boost Xmas GDP.

Cheers,