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International Frontier Resources Corp V.IFR

Alternate Symbol(s):  IFRTF

International Frontier Resources Corporation is a Canadian company, which is focused on advancing oil and gas projects. Through its Mexican subsidiary, Petro Frontera S.A.P.I de CV (Frontera) and strategic joint ventures, it is advancing the development of petroleum and natural gas assets in Mexico. It also has projects in Canada and the United States, including the Northwest Territories, and Montana.


TSXV:IFR - Post by User

Post by geodude13on Mar 25, 2011 9:23pm
341 Views
Post# 18343592

How bids work....in the NWT

How bids work....in the NWT
Not sure for sure but .....

I think the best explanation is provided in the following document....read pages 13 to 16.
https://www.ainc-inac.gc.ca/nth/og/pubs/ann/ann2009/ann2009-eng.pdf

IFR is partner with Husky on the two wells referenced in the 2009 summary. I believe the bidder or partners need to post 25% of work bid as submitted. Not sure if IFR would go it alone or enter into a arrangement prior to submitting the bid. My feeling is IFR would go it alone but then farm out a portion into a JV or farm-in on someones land.

So assume the bid for the exploration licence is $20 MM. 25% would make the the bond $5 MM and a 10% farm-in interest in the exploration licence would be $500,000. So the $7 MM kitty has lots of potential in a farm-in arrangement. However these wells are pricey. Husky as operator spent $24 MM on one well in 2009 so a 10% interest is $2.4 MM. The successful bidder must meet the bid work commitment within the defined work period.

Feel free to correct me if I've got it wrong.

Farm-in definition
An arrangement whereby one oil operator "buys in" or acquires an interest in a lease or concession owned by another operator on which oil or gas has been discovered or is being produced. Often farm-ins are negotiated to assist the original owner with development costs and to secure for the buyer a source of crude or natural gas. See Farm-out Agreement.

Regards,
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