RE: Stocks is collapsing on massive volume Another bad term with this deal is Statoil doesn't want to take the risk to carry us on the cost for the phase 1. We have to bring our $25MM. This is very uncommun in this kind of farmout. It shows that Statoil doesn't think there is good chance to crack the code of the shale. Only if there is a proof it works at the end of Phase 1 they will carry us and finance it. Very uncommun. For instances Hess with Falcon oil for the shale in australia, Appache with Tag for the shale oi in NZ or Exxon with Falcon oil in Hungary. Or Exxon with Americas in Argentina. They all financed completely the phase 1
It is the first time I see a company farm in with a junior for shale and doesn't want to finance the phase 1. This is very negative. The market doen't like that at all. I understand.