Response to onedaylate Onedaylate. In response to your good questions I would note that ROI had its’ Capex Plan to the Mexican authorities, on time, around the end of August 2016. The expected approval to be within 90 days but this did not happen until April 19, 2017, 4 to 5 months behind timelines set by the Mexican authorities, so that 5 months is on Mexico.
It is a new regulatory regime and ROI is helping write the rules having submitted a white paper to the Government with respect to environmental issues and proposed regulations.
ROI, in dealing with PEMEX and Government Officials has a strong team, some who are Mexican and have worked in Pemex. I am confident they are pushing hard.
I got some negative comments for saying this before but IFR is operating in the same regulatory regime with a Mexican Company for a partner and they do not have permits to drill as of this date either. I say this to make the point that the delay is not likely on the part of the management of either company.
Also, companies often announce drill programs before actually having the exact geology and drill sites determined. ROI has to drill and do the work overs within a limited timeline and the Authorities want this done and want and need the oil production.
The ROI contracts on the first four blocks spell out the minimum number of wells that have to be drilled. ROI had at least 8 months to figure out and put it in their Capex and announce it. The work overs are usually done first on all producing wells or recently producing wells so that is easy to figure out and announce as well.
I think the single biggest delay factor, if there is one, is simply the size of the Amatitlan block of land. If this land is broken into 40 acre drill blocks there are over 1400 potential drill sites. This is a huge piece of land. My speculation is that ROI wants to drill on this property quickly and successfully to show the Mexican authorities, Pemex and other Companies what they can do. There are a lot of Companies and opportunities for joint ventures and a lot more blocks going up for bid. I expect ROI will be drilling soon and often to meet all commitments.
I am long on this Company. In my view this is a phenomenal opportunity. Be patient. The President, Directors and top management, from what I can understand are looking to build a major oil company and do it quickly but on the correct basis.