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I know the shareholders are tired. Very tired.
Dave may or may not. We are all fast asleep at the moment. West Perth doors are locked because poor Davie is tired.
Sorry jof, simply don't have have energy to read it.
Jof see what you mean :-)
'Conditions precedent: If the interest is to be transferred upon execution of the
farm-out agreement, it may be necessary to include certain conditions precedent to
that assignment. For example, in the majority of jurisdictions the consent of the
relevant governmental authority will be required in order legally to effect a transfer
of an interest in a concession. Additionally, if there is an existing JOA (joint operating agreement) in place, the
consent of the other JOA parties will usually be required, and it may be necessary to
include as a condition precedent the waiver or non-exercise by the other JOA parties
of any pre-emption or preferential rights they may have. If there is no existing JOA
in place, the parties to the farm-out agreement may wish to include negotiation of a
JOA as a condition precedent to the transfer of interest (and possibly append to the
farm-out agreement a set of agreed principles upon which those negotiations relating
to the JOA will be based). However, for certainty, it may be preferable to agree a form
of JOA in parallel with the farm-out agreement, and for the agreed form of the JOA
to be appended to the farm-out agreement when it is signed.
If the transaction is structured as an earn-in and the interest is to be transferred
upon the fulfilment of the farm-out obligation, it is likely that the conditions set out
above will also still need to be fulfilled in order legally to effect the transfer of the
interest. Therefore, if this formulation is adopted, care will need to be taken to ensure
that nothing prevents the intended operation of the farm-out agreement after
completion of the farm-out obligation (eg, through the exercise of any pre-emption
rights under a pre-existing JOA or through the refusal of any necessary governmental
consent to the transfer of the interest)'
Hi Brom. Hope you are well. According to that article it could be either upon signing or upon certain milestones being met...
'Different types of farm-out
Farm-outs can occur at different stages of the petroleum lifecycle.
If a farm-out is undertaken during the exploration phase of an asset, typical
obligations that the farmee agrees to undertake will include seismic exploration work
and the drilling of exploration wells. Often the farm-out work obligations are linked
to the minimum work obligations of the underlying concession (to the extent
permitted by the relevant governmental authority). The transfer of the interest in the
concession will often be effected once the obligations under the farm-out agreement
have been fulfilled by the farmee.'
Jof think the consensus is that it will be a "condition precedent" to be fulfilled before the drilling takes place.
Jof added to wiki 88, examination on Monday ;-)
https://www.pbookshop.com/media/filetype/s/p/1406297744.pdf added 19/07/2019
https://www.lexology.com/library/detail.aspx?g=da423e16-5bba-4db1-9535-2e5867b5ccc6 added 07/06/2019
https://dadoa.org/resources/Pictures/Anatomy%20of%20a%20Farmout%20Agreement_7-17-2017.pdf added 12/04/2019
https://egyptoil-gas.com/features/farm-ins-farm-outs-reasons-complexities-and-challenges/ added 03/04/2019
https://www.youtube.com/watch?v=oA2V9QA5J14 added 22/03/2019
https://youtu.be/vEoZUs_u4DY added 22/03/2019
https://www.investopedia.com/terms/f/farmout.asp added 22/03/2019
https://oilandgaslawdigest.com/primers-insights/farmout-agreements-basics-negotiations-motivations/
https://oilandgaslawdigest.com/primers-insights/farmout-agreements-part-two/
http://scholar.smu.edu/cgi/viewcontent.cgi?article=2690&context=smulr
http://www.mondaq.com/Nigeria/x/8501/Why+Do+Oil+Companies+Do+FarmOuts+And+FarmIns
Won't the Working Interests get amended later on, once the farminee has satisfied the conditions precedent ie. drilled so many wells and or paid for x miles squared of 3D Seismic?
Time limited at the moment - got to clear the attic as removal chaps coming to give estimates next week.
I may miss the spike but in for the long game anyway.
Chickens, eggs, cows goats and pigs gone.
I decided to leave the amphibians & reptiles (frogs toads, newts & slo-worms).
Still have some harness in barn - not used since my teens.
LM sounds like the chicken and the egg (with a few reptiles thrown in for good measure) :-)
What's the odds that someone will suggest a competition as to what will come first and when :-)))
stay appy everyone, we have waited a long time but hopefully we are in the final furlong even if it feels as if our back legs are tied together and our bit has gagged the horse.
Not many weeks left this month.
Will the FO come before the QR?
Stay tuned.
Bridgedogg1 yes its a case of WDNK etc. Hopefully Bex are on stream and not throwing any spanners into the works so I do not see the actual administration as an issue, hopefully we will get an update next week.
I have no doubt DW is not able to inform us fully as to what is happening at the moment and if he did it may chuck a sledgehammer into the work :-(
speaking of which
https://www.youtube.com/watch?v=wZirFrP1YlQ
:-)
Brom
Armstrong took 1 month from application to confirmation. Repsol took 2 weeks. We dont know how complex our application is but its a big area with many leases, possibly with different arrangements?... I dont know. If it is a straight % swap over the whole area then it seems 2 weeks is reasonable turnaround from date of application. Was the application made on, before or after 26 June 2019? Has it been submitted yet? Would be good to know. Whats certain is it could come in any day now.
Thanks for the sensible reply Brombard. Shame we can't remove the dross from here as it clutters the forum up and the decent posts get swamped.
I do know that DOG employ FedEx (or similar) when paperwork in respect of NEW leases such as 393872(Yukon) is awarded, a couple of years ago dispensation was given due to the hurricane damage in Houston in 2017 as distribution of documents was delayed.
Planned updates to DOG regulations to allow online bidding/ payment of deposits etc may mean some streamlining will occur.
It's not immaterial (or even immitertial - whatever that is). You just cant answer my question. Instead you bring up some rubbish which certainly is immaterial.
Bridgedogg1 working interest changes are routine for DOG.
OSH,GMT and Repsol have been updating lots of leases, plus the ENI Caleus deal went through reasonably quickly.
It requires detailed instructions and probably these have to be recorded in the Alaska Recorders Office.
If this process is happening I would be sure that DW has signatures already on the dotted line but nothing public until complete.
Stockdale the question you ask is immitertial, it will takes as long as needed, to insure that every T is crossed I is dotted and , & . is in the correct place. This very complex contract is not being done personally by DJW, doing the research will confirm this.
One needs to bare in mind that the reasoning behind this, is that the Farmee will be entering into a contract that will no doubt terminate when the last drop of oil has been extracted. (How long is a piece of string).
Slight digestion, if businessmen had been negotiating Bretix it would have been done in months not years, with no leaks.
Instead we leave it to politicians, who demonstrate beyond any reasonable doubt, they couldn't organise a P up in a brewery.
I rest my case, how many tax laws servive more than a few days before the loop hole is found, and to conclude my argument, have visitors to Spain never wondered why motorcyclists drive around wearing their crash helmets on their arm and not on their heads??
The word used by the law makers means wear or carry I rest my case mi Lord!!!! Which I believe is proven beyond any reasonable doubt!!!
With signatures in Auz, Alaska, US, China?? Japan?? South America?? etc etc the contract can be signed electronically,
The change of working interest via the State of Alaska Division of Oil and Gas (DOG) is a different matter - its a monster - DOG may well be going back to the parties to ask for clarity. My speculation is that this is the hold up .
http://dog.dnr.alaska.gov/Services/Applications
- Assignment Applications
5lawsofgold agree 100% excluding last sentence which takes it to 1000% of common sense!!!!
Which unfortunately can be somewhat lacking on this BB.
Can that be done electronically? Or by original documents by snail mail only?
Stockdale I think the feeling is we are waiting for the assignment of Working Interest to the new party, with the legal terms being ‘triggered’ by this event
Switzerland has a higher debt per capita than the UK. Norway is also in the Top20 countries by debt. No major country in the world has zero debt.