***Please note mods, whilst reference is made to the nameless...

***Please note mods, whilst reference is made to the nameless company this is only done as a source of information to lead into discussion about KEY***


SPP for our JV partners in EP437 states:

- The approximate costs to *** of drilling Waugh-1 (a permit work obligation) in EP437 retaining 35% is
$250,000

Considering KEY and *** each have 50% interest in EP437 now, I presume this means that they have a farmin partner in mind. Only other alternative would be if KEY was footing most of the bill to increase their share of EP437.

My guess, is that both partners are farming out 15% giving the new JV partner 30% in return for the majority of the well costs.