'ArtM72' pid='68892' datel Wrote:2126 - Would you please point to the section of the SPA which gives the operator "the full, unambiguous and unilateral power to declare the 'trigger date' which will begin the appraisal/certification process of PRL 15". If your notion of that authority is the clause which states the trigger date is based on Total's sole authority to declare the end of A6 testing then you have a point. If that is the case then MH left IOC open to never getting paid because there is nothing other than winning a bad case in a long court battle that would force Total to declare the end of testing. Thus in a very important way Hession REALLY screwed up by not making "end of testing" more definitive in his deal with a bad partner. Will has got it right. What is going on (along with the demonization of Mulacek here by some) is common shareholders getting pure crap information from Hession and HIS board. We have NO idea what Hession is doing or why, and if he won't tell us then he should be fired for malfeasance. I have no idea why Tree supports the actions of this man. As the old cheer went, he's gotten the elevator and we've gotten the shaft.
Under Clause 3.3(a) of the SPA, the Buyer must notify or have the Operator notify the Seller within 5 business days of the completion of drilling and testing of the final appraisal well under the appraisal drilling program. This is the 'trigger date' to begin the certification process. Total is both the Buyer and Operator and, thus, has full, unambiguous, and unilateral power to declare the 'trigger date'. This is further defined under Schedule 4, Part 6© of the SPA. Within 20 days of this date, Total and IOC select their appraisal experts and the certification process begins. While other issues relating to PRL 15 are governed by the JVOA, the Interim Resource Certification and Payment are only governed by the SPA. The end of 'testing' of an exploratory gas well is a relatively standard point in time across the industry. Testing is over at Ant 6, judging by the plans to cap and abandon it. The remaining question is whether Ant 6 is the 'final appraisal well'. We should know the answer to that in 30-45 days. All of this is very reasonable O&G business practice. No surprises.
One can hope for rapid or immediate corporate decision-making on the part of both Total and IOC but that is just not a reasonable expectation when dealing with multi-billion dollar decsions.It is also unreasonable to expect hand-holding by a corporate CEO explaining exactly 'what he is doing and why' in the middle of negotiations with a business partner regarding decisions with hundreds of millions of dollars at risk.
It is rather tiring to sift though self-serving statements like that Hession 'screwed up' and that Total is a 'bad partner' and shareholders are getting 'crap information' and Hession should be fired for 'malfeasance'. It is rather clear that all parties to PRL 15 are awaiting the upcoming OSH certification numbers in order to make very important decisions regarding further drilling and testing to determine the extent of the resource necessary to make crucial engineering, planning, and financing decisions regarding the plant size. Why these circumstances should be causing so much anger and distress is somewhat a mystery to me.