re: Ann: Letter Of Intent Executed for Pathfi... Definitely...

re: Ann: Letter Of Intent Executed for Pathfi... Definitely Shelcomm there would be horse trading going on and as the expression goes "....there's a pony in here somewhere"

What the FO partner has done is to hang on to more of their cash for longer but get the asset now - they don't really pay for much until drilling occurs and would pay 30% of whatever costs incurred from the date of P&S Agreement.

Again, the $3M is estimate but the longer term stock holders should be able to figure out the spend to date for Pathfinder or at least get their question answered (I'm still waiting too).

But with a cash reimbursement upfront in kind for costs commensurate to WI purchased at least AKK gets some wiggle room with how to deploy cash.

Of course doing that, makes it much clearer as to what value AKK is receiving. All well and good to say free carried for next 2 wells - which at the reduced WI would still cost say $7.7M but AKK did sell something - their balance sheet will show a reduction in total assets.

The challenge is to figure out if they got a good deal or not - and if/when to buyin.