Decision to hold or sell? Questions answered by IRI sent Investor relations a few questions last night and received their reply.
1./ Under the terms of the sale agreement with Pacific Rubiales Energy Corp. how will the High-Price Participation Dispute be handled if the National Hydrocarbons Agency is successful?
It will be managed by PRE
2./ Will ExploreCo be a publicly traded company and if so when would shares of that new company be tradeable and on which exchange?
Probably in the Toronto Stock Exchange
3./ Will the drilling of the first two wells in Brazil still proceed and if so will that cost be borne by Petrominerales or ExploreCo? Estimated cost per well?
Yes, brazil drilling to proceed as scheduled. Costs up to closing (end of November) will be borne by Petrominerales, then post closing borne by Exploreco. Depending on the type of well drilled (depth), we estimate well costs between $4-8M
4./ Will ExploreCo begin its operations debt free ( excluding cost of acquiring balance of Alvopetro?
Yes
5./ Will ExploreCo begin operations with the same General and administrative costs of aprox $11.5M per QT that Petrominerales was spending? If not what would be the estimate? No, G&A will be significantly lower in exploreco. We do not have an estimate at this time.