Section from the MHL HoA announcement on 26/11/2007:
//The HOA forms the framework for the ensuing Joint Venture and Joint Venture Operating Agreement which enables Monitor to move forward with exploration in the Kyrgyz Republic licenses at no operational cost to the Company.//
Please find below my attempt to explain how MEDINA came to have the HoA with MHL and the events that have taken place since then to move the HoA to a finalized J/V between MHL and the Unnamed J/V partner in the near future.
EDYOR&DD
The US petroleum company could not be named as the J/V as they already had an application approved with the SEC and the application did not list the Kyrgyzstan project. So if they wanted to include MHL at this late date they would have to submit a new SEC application and start allover again which would take a long time. They were eager to get the project moving so hence Medina was used in the interim.
MEDINA was used as a temporary vehicle until the J/V company had it's AGM this month in the Northern Hemisphere to approve what the SEC had already signed off on.
The resolutions were approved this month at the AGM allowing the unnamed J/V partner to move forward on folding in the MEDINA HoA into the Unnamed J/V partner.
The meeting in Sydney on Thursday 20/12/2007 with the unnamed J/V partner that will takeover the HoA from MEDINA went very well. They are keen and ready to move forward with the projects.
Jon spent Friday 21/12/2007 with the solicitors finalizing the documentation. Once they are completed then the Board will sign-off on the documents.
Jon stated that they are pushing the solicitors as hard as they can given next week in Christmas week.
Barring any unforeseen problems (Christmas Week??) MHL will have an announcement out no later than month end explaining the details of the J/V and an update on all the projects including the Uranium projects and and a possible additional J/V on projects in the Cooper and Eromanga Basins. See map below.
All indications seems very positive based on the research as posted and conversation with Jon.
Jon has confirmed that the unnamed J/V partner that I had located in my search of the SEC records was the correct one. I will not name the company because IMO that should be announced by the company.
What I can say is that from all indications from my research the company is cashed-up and ready to move forward with all of their projects starting in Jan. 2008.
Caveat we will need to see an official MHL announcement to validate the above.
Potential projects in the Cooper and Eromanga Basins
ATP filings in Queensland by MEDINA. We will have to wait and see if MEDINA and MHL will have a J/V on these tenements.
The applications listed below have been approved. Medina applied for 6 tenements and were granted 4.
http://web2.encom.com.au/gpinfo/gp_sep07.htm
Queensland
Applications for onshore release areas LR 2007-1-1 to LR 2007-1-16 and LR 2007-2-1 to LR 2007-2-25 closed on 27/08/2007. The following applications were received (with a number of competing applications over some of the areas):
Release Application Applicant
LR 2007-1-1 ATP 862P Medina Group Ltd
LR 2007-1-2 ATP 864P Medina Group Ltd
LR 2007-1-5 ATP 865P Medina Group Ltd
LR 2007-1-6 ATP 866P Medina Group Ltd
Oil and Gas Joint Venture Heads of Agreement Terms
Announced on: 26/11/2007 13:26:00
Monitor enters into Farmout on Kyrgyz Oil and Gas Projects for funded seismic, drilling and operations
Monitor Energy Limited is pleased to announce that it has signed a Heads of Agreement (HOA) with Medina Group Ltd, (Medina) a Hong Kong registered Investment Company specializing in the oil and gas sector. The Heads of Agreement requires Medina to spend up to US$13M on exploration. The HOA forms the framework for the ensuing Joint Venture and Joint Venture Operating Agreement which enables Monitor to move forward with exploration in the Kyrgyz Republic licenses at no operational cost to the Company.
Key Points
Medina will provide up to US$5M funding, exclusive of mobilisation and demobilisation, for a seismic survey, to earn 80% equity in the Kyrgyz Republic licenses.
Medina to fund up to US$8M funding for drilling of an exploration/production well exclusive of mobilisation and demobilisation to earn an extra 5% equity, taking its total to 85% subject to a successful seismic outcome.
Medina will fund mobilisation and demobilisation costs for seismic and drilling equipment and supplies.
Monitor Energy Limited will be free carried for all costs in relation to the Kyrgyz Operation to commencement of production.
Medina will pay all operational costs associated with management and administration of the Kyrgyz operations from 1st January, 2008.
Monitor Energy Limited will remain exploration operator for the Kyrgyz assets on behalf of the Joint Venture.
Both parties are now working towards completion of a more formal, Joint Venture and Joint Venture Operating Agreement, which is anticipated to be completed by late December, 2007.
MHL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
