Ann: Letter Of Intent Executed for Pathfinder Far, page-8

re: Ann: Letter Of Intent Executed for Pathfi... Hi Shelcomm,

Not sure I follow the logic of the 20% - unless that is the 30% of the 65% NRI that AKK holds.

Trying to roughly "evaluate" the Farm-out.

Effectively 25.5% farmed out (30% of 85%) for $12M

There is no mention of previously invested monies being reimbursed up to the WI. Thus if AKK has spent $10M so far (don't know what the number is - if you know please say) in its 85% WI, then $3M is monies spent by AKK that has been included in the Farm-out. So the $12M is really $9M. Plus now the Farminee also gets 19.5% (their NRI) of production from existing Pathfinder well

Roughly farmed out 3000 acres so roughly $3,000/acre (anyone surprised???)

To the RI, it should still go ahead because as I interpret whats happening they still have the gas gathering infrastructure to contend with - with the Farm-out taking care of the immediate lease obligation, maybe they will fund the gas gathering infrastructure amongst the WI partners.


Not that I would send privileged correspondence but in my question/scenario for GG, for the farmout I had a 60%WI farmout for $14M with a cash reimburesment/drill carry split.

All in all $12M for 30% looks like AKK have done well.

Maybe GG will respond soon now this monkey off his back.