East West Petroleum Corp V.EW

Can they be shopping for a buyer?

[Steve12141214]

any chance EW is just buying time by saying ex-7 is not commercial while they shop around and look for someone to buy them out?  

NIS claims it's commercial, doesn't  that give EW a little more leverage to bring its Romanian assetts to some bigger oil companies and try to sell it off to them.  

Maybe NIS hasn't offered a buyout? So EW might be presenting its package for sale to for example Mobile, BP, or whoever is in that area.  

I just can't see why it would get tossed away and NIS takes all.  It obviously has value so what are they planning?

[Shredar1956]

Doubt that any oil company wants replace EW and be subject to the whims of NIS.  It is more likely that NIS, because of their resources, declared the well commercial, fully knowing its not, so that EW has no choice but to reneg on the contract.  This way they can claim default of EW contract obligations and gain 100% control.  This is just as plausible as what you suggest. 

[Steve12141214]

Everything seems so off right now. Oil prices rising and in my opinion only going higher.  NIS is clearly moving forward with ex-7 and they claim it's commercial.   Anyone know what EW portion of cost wouldve been on this field?   I'd assume there would be a definition of what "commercial" means in the contract.  How can one claim its commercial and the

[RHertig]

Commercial to Ew and nis are different because. EW will get wellhead money. NIS will refine it and sell finished products. If they break even or at a small loss at the well head thy make it up with feedstock for their refinery and service stations in country.

[Isaiahman]

We seem to be in a quiet period.  I am wondering if some things are happening behind the scemces?  The main issue for NIS is feedstock.  With thier fiields in the region slowing down, it is cheaper for  them to make these wells commericail and not pay the shipping costs to keep thier refinery(s) running.  Better to have it in your back yard then in your neighbors south 40.