From MD&A
During the fourth quarter of 2012, the Company completed the acquisition of the 50 line kilometre of 2D seismic data. On January 10, 2013 Rockstone made a payment of $181,638 in respect of the seismic program.
Pursuant to the terms of the Farm-in agreement, Rockstone made a payment of US$50,000 on January 29, 2013 to earn a 2% interest in the L14-50 concession. The final US$52,671 outstanding in respect of Rockstone’s obligations under the seismic program was paid on April 18, 2013. As a result, Rockstone has earned an additional 20% interest in the L14/50 concession in accordance with the terms of the Farm-in Agreement.
The final independent interpretation of the 50 line kilometer 2D seismic program, on the Block, identified the presence of two primary drillable prospects with direct hydrocarbon indicators. The Company provided Rockstone with a proposed well program on February 19, 2013 triggering their 60 day option to earn a 35% interest in the Block. As of the date hereof no election has been made.
Rockstone must also pay US$100,000
to earn a 3% interest in Block L14-50 by this date whether they elect to participate in the drilling of the well or not.