Where will we drill the next 10 wells in PPL237?

[sageo]

petrengr1: It looks like the other prospects you mention near E/A are either in PRL 15 or PPL 237. I believe that would make part of them part of the E/A sell down, unless they break up PRL 15 in the agreement(s), and part of them in the PPL 237 deal with PRE in addition to the ones on the Western side.

Getit- As presented on the map at http://www.interoil.com/iocfiles/documen...inal-1.pdf   Page 21 the following prospects are in “both” PRL-15 and PPL-237: Mule Deer, Mountain Lion, White Tail and Raptor/Duckbill. If drilling and additional seismic confirms this picture then the parties of both licenses would likely make a unitization agreement whereby the production would be split up in accordance with the agreement between the owners of PRL-15 and PPL-237.

The sell down agreement is just for PRL-15, so it only includes what is under the surface area marked as PRL-15. The owners of PPL-237 are entitled to whatever is on their side of the boundary between PRL-15 and PPL-237. Until a unitization agreement is made the license owners on each side of the boundary are entitled to whatever is produced from their license. After a unitization agreement is made the production from the entire field is split in accordance with the agreed percentages.

Of course we are getting a little ahead of ourselves since we do not yet know it these prospects contain hydrocarbons and we do not yet have the necessary positive information that the prospects are productive on both sides of the boundary. Let’s just hope this is a problem that has to be solved in the future.

  Thanks for that clarification on those prospects,Pet. As an aside, I can't remember if you have any interest in bpz resources (bpz) or not,(in Peru); but if so,have you noticed what Pacific Rubiales is doing with them now ? As of 4-1-13,pre is now handling the drilling aspects on the wells in thier Z-1 lease.( according to one recent report)