Ann: Market Update, page-6

Was pleased to get today's announcement and update on the different locations. Interested to see Abita to be moving to the upper 18 sands and that application can now be seen at bottom of the well report in Sonlite. West Klondike should be around $30k per mth once producing by my calc's.

Re the bottom paragraphs, a bit of googling: AFE = Authorization for expenditure, JOA = Joint operating Agreement, BCP = Before casing point and ACP = After casing point.

I think it means 2 scenario's are possible:
1)Risk free - GGE pays for the operator extra 6.829% for the cost of the well for the non participant. After well is completed and assuming it produces we recover the cost x 300% from revenue. Once this is recouped we go back to the original Working interest (16.57%) and the leaseholder then has paid the cost plus penalty. Essentially I think this scenario (If well is a success) means the ultimate cost to GGE is almost nil. If we look at last quarterly it had $500k exploration so could be what that was for.
2)Acquisition - If we can acquire the 7.4% then we just pay the extra and take on the addition working interest in future income. Same as above could explain the $500k exploration in the qtrly. (Covering bases!)

Looks to be a good outcome to overcome the delays experienced, there would be a process to follow and these options are likely to be aimed at resolving the issues. In all a good outcome now if it clears for the spud and it still gives the non participating Leaseholder choice in longer term which seems fair.

Always remember I make this stuff up based on my research so always check for yourself to be sure.
Bw