From the announcement dated 18th May 2010 in reference to the...

From the announcement dated 18th May 2010 in reference to the ATP840 farm out with Clark Oil and Gas:

“Red Sky Energy Limited (ASX: ROG) (“Red Sky” or “the Company”) has concluded an agreement with Clark Oil
and Gas (“Clark Oil”) that appoints Red Sky to manage the farm-out of both the conventional and non-conventional
rights to ATP 840. Clark Oil currently holds a 100% interest in the conventional rights to ATP 840. Red Sky has
earned a 50% interest in the non-conventional rights.

Red Sky will be seeking a farminee to earn a 50% interest in both the conventional and non-conventional rights to
ATP 840, by funding a well and seismic. Should this occur, Red Sky will earn a 20% interest in the conventional
rights whilst maintaining its 50% interest in the non-conventional gas rights.”

From the most recent Red Sky Company Presentation dated 30th May 2012:

“• Taroom Trough Project in Queensland:
Potential for major basin centred gas play in ATP 840
Earned 18.75% of conventional and non-conventional resources
Currently seeking farm-in partner

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What a mess!

Given that Clark Oil are now handling the farmin, one assumes that Red sky have been bundled out of the deal, and accordingly have had their percentage in the unconventional reduced to 18.75%, and have somehow ended up with 18.75% in the conventional rights. (They didn’t earn the 20% because they were unable to get a farminee ...see above)

I can’t find any references or notice that explains what actually happened here! Have I missed something here? How did we start with 50% of the unconventional rights and end up with 18.75%?

Have RG and coy fallen asleep at the wheel again?

Regards all

LL