Ann: Invictus Energy Project & Drilling Update, page-150

Keep in mind as well that the JV partner most likely won't be covering 100% of the drilling cost so we'll need another raise either way.... I'd rather raise 100% of the well costs and keep our share of the project rather than give 30-50% of it away for 30-50% of the costs covered. Then on success, we can farm-down to cover the appraisal/pre-development costs at a much higher valuation.

Absolute gift if we allow a partner to farm in at this late stage for more or less = % ownership to % costs covered... IVZ to date have taken on all the risk and de-risked major aspects of the project... needs to be a premium paid to accept a partner to come in...

For me, the only way the current farm-out offer would be acceptable is if more than their % of back-costs are paid which add to to covering IVZs share of the 2 well program.