OTCPK:WSRLF - Post by User
Post by
Fernando2010on Jan 25, 2011 9:19am
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Post# 18021733
Talisman not to drill Mil Qasin well?
Talisman not to drill Mil Qasin well?I´m new to the board, performing a due diligence before deciding to invest in the company.
I read the following excerpt from Q3 2010 Financial statements (page 7):
WesternZagros is currently in active discussions with both Talisman and the Kurdistan Regional Government ("KRG") on future drilling activities on its PSC lands and the timing thereof. As part of these discussions, the Company may be required to initially, or entirely, fund 100% of the costs associated with the third commitment well if Talisman elects not to participate. If these discussions are not successfully concluded, the Company will rely on the force majeure provision of the PSC to guide the timing of future activities.
I was surprised to read this.
Is it possible for Talisman, under the contractual arrangements with WZR, to decide not to participate in the drilling of this well?
If WZR has to drill on its own, I understand that this will increase the financial burden to WZR.