Maxim Resources Inc. V.MXM

RE: Trading time

[SRT10]

"which basically provides the company with the same interest."

is that so?  maybe I misread something.

LONG-TERM LOAN RECEIVABLE

Subsequent to December 31, 2008, the Company entered into a letter of intent with an arms length private company

relating to five wells located in the South Erin Block located in South West Trinidad. The letter of intent voided the

previous working interest agreement (Note 6). Based on the letter of intent, the Company shall receive 69% of 90% of

the net revenue (as defined) of the five wells until return of the original investment (December 31, 2008 - $4,195,918)

after which, the Company will receive 41% of the net revenue of the five wells. To maintain its repayment rights, the

Company is responsible for 69% of any further costs on the five wells shall they arise.

At December 31, 2008, the Company wrote the receivable down to $2,800,000 to match the Company’s estimate of

future cash flows. The estimated cash flows have been discounted using a credit-adjusted risk free rate of 10%. This

resulted in an impairment on the long-term receivable of $1,395,918.

The long-term receivable is non-interest bearing and repayment is uncertain due to the uncertainty and timing of future
cash flow.


So they still have an interest in the field ?  could you point that out to me because all I see is interest in the 5 wells.    W.I. and net revenue are as you say basically they same ? how do you come up with that conclusion?