usually no cash changes hands with these deals. they pay for x% of the well costs to gain y% of the permit. The JV is not just to the benefit of the buyer, it also to the benefit of the seller as they are allaying cost and risk. The industry is capital intensive as it is without having to pay money to buy a stake in a well....
and when was the last time an oilspec went into recievership?
they never die, just keep getting resurrected with more capital and hundreds of millions of shares. KRZ and VPE the best of the best with about a billion on issue each........ in the end they reconstruct at 1 for 10 or so and start all over agian.......
