howdyi'm going to break this down into easy to understand...

howdy

i'm going to break this down into easy to understand segments..

1) read BPO's announcement dated 30/1/2012....

""Otto has confirmed the Trans-Asia Option in its announcement of 18 January 2012. That announcement states: “Trans-Asia Oil and Energy Development Corporation has an option to acquire 5% of the working interest held by Otto's subsidiary, NorAsian Energy Ltd, in Service Contract 55 by paying 5% of the direct drilling costs of the first well in SC55 and must be exercised within 180 days [sic] of the completion of drilling of such well.""


""e) In any event, under the terms of the Frontier Option Agreement, subject to Frontier meeting any
financial costs associated with the 5% interest the subject of the Frontier Option Agreement,
Trans-Asia will hold the economic benefit derived from the 5% interest in SC 55, the subject of
the Frontier Option Agreement, on trust for Frontier, however Frontier will not be a direct
participant under SC 55.""

indirctly they (Frontier) have some sort of an agreement (trust) with Trans Asia..

now BPO have 50% stake in Frontier, which they can increase to 75%..

this part is important as i understand it..

BPO have "NO" direct revenue interest in SC55 or whatever. remember that..NO direct revenue interest.

any revenue at this stage goes into the coffers of Frontier. that's assuming they have success with drilling & commercial well..

COMMENTS WELCOMED..part 2 coming up.

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