ONE YEAR EXTENSION JUNE 2013Hello Everyone:
I would like to address the issue of the timetable of June 2012. There are two important points in the contract. The first is that LFD and its partner can request for a 1 year extension to drill Chia, which brings them to June 2013. Secondly, the contract cannot be cancelled if any of the terms are not honored (ie: drilling). LFD can easily invoke that oil law has not passed as reason for holdup in drilling. This would warrant extension. I would presume that Vallares (Genel) wants to drill for oil and does not want to fuss around, so LFD can extend time while Vallares wants the oil and so does Exxon, Sinopec and Chevron. So who is in the hotseat, it appears that LFD has time to wait them out. In case deal does get close to deadline, Stan Bharti can easily finance this drill operation by himself. He gave in December 2011 $ 10 million in charity. Do you honestly believe that he will not finance $ 25 million so that he gets to keep Chia Property for 2nd part of the contract, another 3 year term with extensions. Believe me they are playing it smart, they will wait for bidders to exhaust themselves before selling out. This is why SOROS invested here. Deal should be done soon since Vallares has made it a priority to consolidate.
JMHO