arturus capital - kaput, page-12

I still think the best solution is a partnership with Page. It is obvious that GGP originally wanted rights to all formations within our lease area. That is clear when the first purchased PB from AKW and mentioned the reserves report and negotiations with "third parties", ie Page.

So Page wants 25% of what we have. Probably doesn't have a case. That option expired with the transfer of lease from AKW to GGP unless Page can prove AKW and GGP are related entities. Which they are not.

GGP no doubt want access to all formations and depth within our lease are.

If Page wants in he owes back costs.

Simple solution is to give him the 25% in exchange for rights to lower level. That would be a huge win for both parties.

But I think we will win anyway, and we certainly have some breathing space as Page isn't entitled to anything until we recoup or costs. Hence the go slow approach until now. So the shut in and low flow rates have helped delay Page claim.

Now we can let it flow and reinvest the money back into the lease and not really worry about the case or the appeal for a couple years. In the mean time broker a deal.