Some information from my discussions with management earlier this week.
Upper Jurassic
With respect to completing the horizontal leg, I was given no timeline. Management did say that the permitting by CNH was complete but that ROE was waiting for some of the environmental permits. The best answer I could get on the timeline was that ROE expected this to be completed before the end of Q2.Since we are already half way through Q1 this seems reasonable.
I still think they are pushing this out until after the contract migrates, but I could be wrong.
Management did indicate there may be announcements other than the migration of the contract soon.
Chiapas
The Chiapas drilling program is also just sitting and waiting. It is ready to go with all permitting and contracts in place. I expect that everybody is pretty much working full time on the contract migration.
Funding
While I do not have an exact number, they are to drill 4 wells on the Chiapas blocks and do some more work overs. ROE likely will need at least $8-10 Million. In my discussion with management they have indicated that this funding is available.
With respect to the exercise of the Lukoil option and the drilling program for Amititlan for 2019 they indicated ROE had the financing lined up but not signed off. To quote management, ROE has an agreement for funding that is well North of $U.S. 20 million.
By the way management indicates that there is no F word anymore, it is now hydraulic stimulation. I guess this name change is more politically correct. ROE will be using the expertise of its’ team and Pemex is pushing for this to move ahead. The Secretary of Energy Roccio Niahle appears to be okay with the safety of the hydraulic stimulation and the latest of technologies being used by ROE for Amititlan.
In addition to my last posting, the key point I got out of my discussions was that everybody in ROE, at Sener, NHC and the other ministries are working and pushing to get all of these contracts migrated and ROE is working as fast as they can to respond to any requests for changes and to resubmit to keep the focus on Amititlan. I also think that from my discussions that Pemex and the Government departments want it all done correctly and are using ROE and ROE’s team to develop the format for the whole of the remaining contracts in the area of Amititlan.