Another delay in Migration Negotiation Progress.
On speaking to management, negotiations have progressed well and to the point where a letter of intent could be entered into with respect to the migration of the Amititlan block.
During the ongoing negotiations, significant progress has been made in that the Pemex and ROE and its team of negotiators have reached a verbal agreement and were hoping to get a signed letter of intent in the near future, perhaps even before Christmas. The process, however, has just suffered another setback, which may lead to further delay. The Head of Pemex Exploration and Development Program, Miguel ngel Lozada,who would be the person to sign the letter of intent, has just been ordered out of Pemex on corruption charges.
https://www.reuters.com/article/us-mexico-pemex/director-of-pemexs-exploration-unit-ordered-removed-from-post-banned-from-holding-public-office-idUSKBN1YF2SY?il=0
https://mexiconewsdaily.com/news/government-orders-dismissal-of-head-of-exploration-at-pemex/
Management does not know how this dismissal will affect the process, but the likelihood is only a delay until a new head of Exploration and Development is appointed and can be brought up to speed. Since Mr Lozada has been under investigation for several months and had been suspended once for a period of time already (This investigation has been underway for months), it is likely that Pemex has already put some considerable thought into who will replace him, so ROE feels the replacement will be named soon but we are heading into Christmas break and whoever is appointed will have to get up to speed in his new position.
The good news is that Pemex and ROE have not only reached a verbal agreement, they had agreed on the wording of the Letter of Intent and it was ready for signature. So ROE has progressed to the stage of getting to where they just need everything signed.