GREY:SMBZF - Post by User
Comment by
PapaFritzon Jun 01, 2015 2:22pm
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Post# 23785482
RE:RE:RE:Kenya and Chad PSC at risk of default
RE:RE:RE:Kenya and Chad PSC at risk of defaultTheres definitely some confusion as far as what are the "exploration periods" versus years?
In August it will be 4 years since they acquired the PSC in Kenya and obviously they had approval for the FTG seismics last summer, which blows the first 2 year thing out the door?
As I understand it, they don't owe $8 M to the Kenyan Gov, they must spend that much in exploration, drilling etc over the given exploration periods?
The terms of certain of the Company’s PSCs require the Company to make payments and undertake exploration expenditures in order for the contracts to remain in good standing. In Kenya (Note 5), the contract stipulates that US $700,000 and US $8,900,000 must be spent in the first and second year of its term.