I think the announcement comes as no surprise. NEN had previously approached KRIS with a view to paying the outstanding debt but had received no reply. You would have to think that KRIS are not impressed with NEN with both the Vietnam and Indonesia episodes and have elected to cut them lose.
Not sure of the wording of the statement though. It seems that NEN will waive their share of the block and not be paying the outstanding monies. Not sure how KRIS will view this although it is good for NEN if no payment needs to be made. It then begs the question "How much is the block worth?" It would be rather ironic if the block proved commercial in the future!
Anyway the Vietnam blocks are far more important to NEN. It would be nice if they could relinquish the Vietnam blocks and had to pay non of the drilling costs! Maybe wishful thinking unfortunately.
I'm sure this will be resolved in the not too distant future. At least we will know one way or another. My best guess would be NEN forfeiting the blocks but reducing the amount of drilling costs - the question is by how much?
NEN Price at posting:
1.5¢ Sentiment: None Disclosure: Unspecified
