reading between the lines..., page-20

I don't think we are going to get settlement on PKO Verses Blade for a long time.

It is possible PKO should have just accepted Blades initial offer. But I think it was rejected.

Blade do t have the money to pay PKO $7 million, so how are they expected to go to Viking and say project / rig cost etc are this amount and now Blade want us to pay on behalf of them $7 m for settlement of their old partner PKO plus a legal fee plus other costs / claims.

The other costs could easily be due to Blade not paying the $7 million, Peak had to introduce a equity partner, Albers. This would not have been necessary if Blade had made their $7 million payment back in Jan 2013.

Viking won't have a bar of that. They will say we just pay the project costs and receive a percentage of the revenue, you blokes work out you issues separate from us.

Given PKO must pay around $10 m on behalf of Venturoil just prior to spudding, they can't - they don't have the funds.

One possible resolution will be PKO get a much higher % of Cadlao.
But what a bugger of a issue to negotiate. Fortunately a lot of the revenues and cost can be quantified - they just need a mediator.