Ah Yatchy so you are saying you have inside knowledge...

Ah Yatchy so you are saying you have inside knowledge !!!!!

Excuse my sense of humour

Now I presume that what you are alerting me to is that in situations where there are backin rights involved it is not just a simple case of ....
Look I'll let you drill my block of land and it'll cost you so much to do so and also if after you have drilled it then I retain the right to come in and take a slice of the action if it looks any good.

I am guessing that what you are saying is that if a company has some backin right and the Operator and partners strike a commercial well which makes the company decide that it wants to exert its pre-emptive right to backin then it not only has to pay its share for the costs of the drilling but it may have to pay extra to the Operator and partners because they have taken the initial risk and have a commercial find.

Is that the gist of what you are saying ?

But are all such commercial arrangements involving backins / pre-emptive rights set up the same way ?

I mean if someone owns the land or lease and farms it out to another operator (plus maybe partners) with a backin proviso can't the lease owning company have stipulated that the operator and partners are to free carry the "owner" for the first well or two wells.

I would be interested to hear your inside knowledge on that.

I mean if, as I interpret what you are suggesting, PetroVietnam is going to have to cough up a fairly big sum to the operator and partners to exercise its pre-emptive rights for Block 07/03 then perhaps it will not want to have to front up for the whole 15%.

Your thoughts ?

I may not respond to your answer tonight as I am about to head away to bed.
But I look forward to your answers.