Hi RB,
The JV is APO for the carried wells. Even noted in the AR. APO is also one of a number of std options in US farmin/outs. Lets just say the farmed out interest is relatively high for the carry received (goes to who either had the better cards or played their weaker cards stronger when sitting at the table).
HK assumes 100% of the risk though - if not commercial then its their shareholders capital burned not ours.
I think you have to look at it from an acreage viewpoint - what could AKK have sold it for "undeveloped" (albeit highly prospective and with a couple of shall we say uneconomic wells) versus farming a % out and having a 3rd party risk the capital to find out what it possible.
HK have certainly not "paid nothing". At least HK had money (unlike those other @$#%& from another place). Ah Shelcomm you see, they still lurk in the memory
