Why farm out negotations are different now....3 Dec 2025 14:37
Re some on here frequently mentioning how farm in/out talks in their opinion went nowhere in the past, and have doubted what can have changed in the meantime ( this includes Hamm after the message he sent the company today ) let's imagine how the talks might have gone at differing times.
- Prior to spring 2024 ;
" Well we would like you to invest tens of millions in quite a few wells so as to fastrack Heron/Block XX, however right now we don't actually have any legal access to Heron, and in fact we've been trying to obtain the permission since July 2021, which is when we first obtained the EL.
Don't worry too much though, let's sign the farm out/in agreement, and then we will let you know when we have obtained the access permission from somebody. Don't worry too much that the provincial governor has refused to sign the tripartite Special Purpose designation for several years now - we will get around it somehow...."
- Or prior to February 2025 ( which is when the 25 year Special Purpose designation was granted by the MG ) ;
" Well we would like you to invest in quite a few wells so as to fastrack Heron/Block XX, however right now we only have a 5 year access consent from the local authorities, which currently has about 4.5 years left on it. When that expires we will need to reapply to the local committee, and of course we can't guarantee you that it will be renewed given that it took us just over 3 years to obtain this from first obtaining the EL.
Don't worry too much about that though, we will deal with that hurdle when we come to it. Please sign up now regardless, and invest several tens of millions - after all, the field will last 20 to 25 years....."
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