Bliss, I am not looking to start a posting war, but the concept...

Bliss, I am not looking to start a posting war, but the concept that the J/V between BPT and ICN having a condition that the well "MUST" be commercial in order for BPT to be awarded their 40% interest, is simply uncommercial.

The answer to the issue is important, because ATP855 may prove to be worth heaps.

SO just to satisfy my curiousity, I went back and tried to find the terms under which the J/V was finally agreed.

No where in these terms does it state that BPT has to produce a successful/commercial well for BPT to be awarded their 40%.

If you can direct me to something to the contrary, I would be interested to have a read.

cheers


15 July 2011
ICON AND BEACH SETTLE ATP855P DISPUTE
Icon Energy Limited (ASX: ICN) and Beach Energy Limited (ASX: BPT) have resolved their dispute in relation to the prospective ATP855P tenement, and have agreed to work together under a Farmin Agreement executed today.

Under the terms of their agreement:
• The Federal Court proceedings will be discontinued;
• Icon has now transferred a 40% interest in ATP855P to Beach (subject to Ministerial approval);
• Beach will drill a horizontal pilot unconventional well into one of the strata comprising the Roseneath, Epsilon & Murteree sequence, then case and suspend the well, suitable for fracture stimulation, which is expected to occur within 30 days of rig release from the well;
• Beach will fund Icon’s share of the farmin operations at an estimated cost of $16 million (gross), with the exception of a $1.75 million contribution to be made by Icon;
• The cost of fracture stimulation, completing and flow testing the well will be paid by the Joint Venture parties in proportion to their Participating lnterest shares;
• Beach will be recommended by Icon to be the operator of the ATP855P permit;
• Icon will be recommended by Beach to undertake the management of coal seam gas operations in both ATP855P and PEL218 Post Permian Joint Ventures;

then ICN later say:

16 July 2012
BEACH AND ICON TO ACCELERATE DRILLING OF HALIFAX 1

The financial terms of the farm-in will be the equivalent of those agreed previously with Beach to retain its 40% assignment (to give Beach 60% of ATP 855P) after funding the first $16 million relating to Halifax-1, or until the cost of completion, less a $1.75 million contribution from Icon.