Making progress but no timeline. On speaking to management today, they have nothing concrete to report other than they continue to push forward towards migration of the Amititlan Contract.
They are optimistic that it will happen, but are just not able to even guess a timeline. ROE has had meetings with Pemex and they have all gone well. The key to all of this is AMLO. Upon being elected and taking office, while he has pushed to have Pemex made great again, he really knew nothing much about the operations of Pemex, the oil industry, and what is involved in producing oil.
He has learned a lot in the past year and now is working to develop an oil and energy policy.
While he took the political position against fracking, he had no idea of what fracking was and how it is used in the oil industry and how it is used by Pemex. The recent news article pointed out that with the six new discoveries that three will have to be fracked.
The one key change over the past few months and even the past few weeks is that the top Government officials have gotten a handle on how big of a job it is to turn the oil industry around and that the top government officials, including AMLO are now looking at it seriously and considering all options which includes developing the shale resource.
The government block of ice has thawed out and shale and all different options are being discussed.
The 3 shale wells that Pemex was authorized to drill are not on Amititlan and have nothing to do with ROE. The good news is that the one well drilled, which is just South East of the Amititlan property was a shale well and came in at around 1,000 BOE’s per day with 38 degree API oil.
This was by far the best shale well Pemex has ever drilled and it has got the attention of Pemex, the Gov’t departments and AMLO, who can now see the potential and are excited about what can be done. This is a help in the migration of the contract process.
I mentioned to Management that I saw in the quarterly report for ROE that the Head of ROE’s political department had agreed to take his compensation by way of shares instead of cash. Management agreed that this is a big vote of confidence from him and in ROE and what can be done. He is a seor political consultant who has worked with Gold Corp over the years to assist them in working through the Government road blocks. ROE has a pretty big group of political and Pemex consultants working for it.
The Pemex Board approval is the next big step and once that is achieved we will get a news release.