Chiapas Update Chiapas
In my discussions with management I asked about the Chiapas contracts and program.
Management indicated that these contracts will be extended. These extensions were proposed by CNH and ROE is expecting their extension to be signed off by CNH at any time. All of the contracts awarded to the various companies are being extended because of all of the problems companies faced in getting approvals and permits to conduct the work under the terms of the contracts.
The percentages are not being changed in these contracts for ROE or any of the Companies.The timelines are being extended between 18 to 24 months depending on the block and the problems encountered.
The drilling program for these will not start until at least the 3rd quarter as the focus of all of the ROE management and staff has been on the contract migration and related work.
The Chiapas has all financing in place. It will be about a $U.S. 25 Million drilling program and development program. The drilling pad locations, permits are all in place. Virtually all of the road building, pad building and related work has been completed.
While the percentages are not great these fields and the production and income from them has still been of incredible benefit to ROE.
These fields are all in an area where there are many other fields that will be up for auction when AMLO gets around to the auction. They were scheduled for last October and while there is a chance they may be open for auction this fall but the most likely date ifrom talking to managment is next March or April.