Have any of the workplan commitments changed ???????
sorry if this has been asked,,,New holder
"EP 127 and EP 128 Minimum Work Plan Commitments"
On April 1, 2010, GBEPL entered into two farmout agreements (the "Baraka Farmin Agreements") with Baraka Petroleum Ltd. ("Baraka"), pursuant to which GBEPL can earn a 50% working interest in 7.4 million gross undeveloped acres (3.7 million net) in EP 127 and EP 128. These exploration permits offset GBEPL's EP 103 and EP 104 to the north, west and south in the Southern Georgina Basin. GBEPL will be the Operator under the Baraka Farmin Agreements.
Under the terms of the Baraka Farmin Agreements, GBEPL is required to:
i) meet the minimum (governmental) work commitments on EP127 and EP128 for the year 3 work program (beginning in June 2010), being the "acquisition of seismic data";
ii) commence the drilling of one well to the greater of 600 metres or 20 metres into the pre-Arthur Creek formation on either of EP127 or EP128 by the first day of the 6th month of the year 3 work program; and
iii) commission a resource evaluation report in respect of EP127 and/or EP128, to be prepared by a reputable engineering firm of GBEPL's choice, before the date that is 4 months after the date of the Baraka Farmin Agreement.
GBEPL paid a $100,000 (Australian Dollars) security deposit for Baraka's benefit, which is to be released to GBEPL upon completion of requirements i) to iii) above or could be forfeited by GBEPL for failure to complete such requirements. In addition, GBEPL was required to deposit an additional $1,500,000 (Australian Dollars) into GBEPL's lawyers' trust account as evidence that it has the financial capacity to complete its obligations under the Baraka Farmin Agreements. However, if GBEPL decides to cease operations under the Farmin Agreements this deposit is fully refundable. This deposit was made on June 15, 2010.
BKP Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
