Chiapas Block.
The timetable is set for the drilling, the sequencing etc. The start date has not yet been determined but is expected to be in February or March. One of the drilling pads is ready to go. The other pads need work and are in the process of being prepared.
The funding appears to have been arranged. I was told in one conversation that it was arranged, but then management backed off that comment and said it is close. Personally I think they have more than one source lined up and it is a matter of deciding which source or route to go.
The permits for the 4 well program are all in place.
The Chiapas auctions that were to occur last fall and where then put on hold are not really on hold for 3 years like was announced in the press. Management said that they are simply on hold until the new government has an opportunity to review and reset, which will likely be in the fall of 2019. ROE is working diligently on finding partnerships for bidding on these blocks as ROE is not big enough to bid and likely will not be big enough by next fall.
Management indicated that once the four well program is complete and producing for a period of time the ROE will approach Pemex and the Government to renegotiate the terms to a more reasonable level, closer to what will be the royalty rates on the Amititlan Block. Once that happens they will continue with an expanded drill program. This process and the results will depend on the success of the drill program along with other factors.