JOA All of the latest garbage Viceroy is spewing about the JOA is clearly moronic.
The current Agreement that RECO is Drilling EXPLORATORY wells under is the Exploration Licence. This would Govern all operations related to the exploration of the basin.
this licence is issued to RECO at 100%. RECO is responsible for all of the work and the Costs related to the exploration the terms of their commitment (3 strat wells, costs 100% reco) all would have been layed out in this doc.
A JOA is specifically put in place to Govern the relationship between parties on what will be JOINT Operations. Joint Operating Agreement. This lays out all of the terms around the relationship between NAMCOR and RECO when it comes to the drilling, completing and Equiping and production of wells, who's responsible for costs, who pays the royalties. Viceroy is correct, it is a required document. It is required before the drilling of potentially productive wells (yet another reason why, even if reco hit gushing oil on the 6-2, they would have had to cap the well. you cant produce without a production licence, or a JOA governing what happens with that production.)
This JOA needs to be in place to cover everything from Overhead rates, costs, penalties, participatiion interest, inital drilling costs, legal ramifications, outlaying of terms not covered in the production licence. So many things
they may have had a guy on staff that took a geology course in University, but they do not have anyone there that understands the legal documents required to jointly drill and produce an Oil or gas well. the more i read these papers the more they sound like a guy took an intro to oil and gas course and then tried to write a short report.