RE: Tier 1 or not29 May 2019 13:48
Pipster don't know if this helps;
Q & A 23/07/18 more at http://88ewiki.wikidot.com/questions-and-answers
Q How strong is our negotiating position in current Icewine farm-out discussions?
A We are confident, as we have communicated.
Q Particularly with regards to how much we will have to give up and what we will receive in return for it. For example, would it bear more resemblance to the Armstrong deal with Oil Search, or to the Great Bear deal with our new consortium?
I realise this will be a sensitive topic that you may not be able to answer due to the farm out talks taking place currently, but I thought it worth asking in case you can give us some kind of an idea of what we might be looking at.
A Without a crystal ball, that is impossible to know.
Q On the scale of 1 to 10, how confident are you to execute a farm out deal?
A Not appropriate to answer specifics.
Q Typically, how many farm in/out partners/consortia are considered to ensure that the chosen partner is paying the full commercial value for the play?
A Depends on the deal – for the conventional farm out the audience is very large. The HRZ is more specialized.
Q Is it likely Farm In/Out contracts will have a Front-End payment from Farmee to us (88E, AEA, JV)?
A It is possible (for back costs for example)
Q Are Farm In/Out contracts likely to be signed during 2018? How many contracts are hoped for?
A Our goal is to have at least one executed in 2018.
Q How much of our land are the Farm Out contracts likely to cover?
A Impossible to guess – depends on the structure and what is being offered.
Q I assume contracts involve an exclusive right for Farm In company to convert to full purchase? Is a time limit put on this option?
A This would be unusual.
Q Are Burgundy involved in the above negotiations, if so in what ways?
A Yes – we are aligned in our efforts to execute a farmout.
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