Timing of Migration of Amititlan Contract Timing of Migration of Amititlan contract is unclear, but being pushed.
The business plan and the development and drilling plan for the next five years for Amititlan are complete. This is a necessary step for both the migration and for a reserve calculation. The contract terms are being negotiated now. The management person I spoke to was just waiting for a conference call with respect to this work. Mr. Steinke was in Mexico at that time and I believe is still there. To help you have an understanding, Pemex is pushing forward in negotiations with respect to the migration of the Amititlan contract. While Pemex wants the completion of the 14 well Chincontepec drill program and the Upper Jurassic proof of concept well completed before the contract migrates, Pemex also wants the migration done before June 30, before the election results. These goals seem to be in conflict. It will interesting to see how this comes together. I am sure there are contingencies that could be built into the contract.
Pemex is pushing to get all of its service contracts migrated before June 30. There are other service contracts, at least six large ones with companies like Halliburton, Schlumberger, other service providers like Latina which has a block to the north of Amititlan. The Latina block is the block that ROE has an option on. Pemex wants these all finalized before the June 30 date and is in negotiations with all of them.
Management I spoke to was just going to go into a conference call just after I spoke to him and the President, Craig Steinke was in Mexico in meetings regarding the migration of the contract along with other business matters.
Management indicated that work is moving forward for ROE, Pemex, and all other companies, at a break neck speed. It is exciting.