Firstly, JPR dont expect J52 to be in the same situation. ie we...

Firstly, JPR dont expect J52 to be in the same situation. ie we dont lose 100% of Block31. We will or should maintain 100% ownership of most the block.

The part we lose is J50 and any other Wells near the border of the MMG lease.

Also important to note is whilst we will lose a percentage to MMG, we will also gain some oil from them.

But I do expect JPR to come out of negotiations in a worse position. The government obviously like MMG. They are the biggest oiler in the country. They have deep pockets and plenty of work without worrying about Block 31.

That puts them in a position where they can say to us 'this is our offer. take it or leave it'.

It has clearly complicated any plans JPR may have had. We now rely on another company. But it could all go very well too. MMG might allow us to connect our wells to their pipeline and save dollars.

Worst case scenario, J50 is on permanent hold whilst we negotiate percentages. But we can continue with drilling other areas. We just need a CR and need to drill away from the border.

Also 'they dont expect J52 to be effected. But they aren't sure. Hardly a definate answer. If J50 stalls, we need to wait on J52 before picking the next location.

Its become very complicated and delays will continue.

A great outcome would be if MMG paid JPR a portion of J50 drill costs in exchange for a share of production. That would eleviate the need for a cr. Especially now that we will share costs on future drills.

It all depends if MMG want to be friendly or agressive. That is the risk now.