berkshire hathaway ipb closer to spudding , page-22

I contacted IPB today and was heartened by the frank replies to my queries, within the constrictions that any company has wrt revealing price sensitive information of course.

The two, most important points that were made to me (imho) were:

1) IPB has full confidence that CalEnergy will proceed with the farm-in agreement in it's entirety and, if IPB management had any thoughts to the contrary, they would feel compelled by the ASX disclosure rules to announce such asap.

2) In the completely non-expected event that CalEnergy cancelled the jv then paragraph 11.2.1 of the IPB prospectus of March 2013 would apply (see below)

"IPB estimates that the cost of the Pryderi-1 well will be approximately $15 million. The drilling of the Pryderi-1 well before 12 July 2013 will satisfy the WA-424-P permit year 2 exploration well commitment. If CalEnergy fails to drill the Pryderi-1 well (or a mutually agreed alternative), or it is only drilled to a depth agreed to by the Relevant Authority (being less than the depth required by the conditions of the WA-424-P permit), and CalEnergy has not elected to acquire the “Phase 2 Interest” within the prescribed timeframe, CalEnergy will pay to IPM424P $11.4 million less the costs expended on the Phase 1 program."

GLTA!