Mike, I've been told by Allan Laird:
Here is the reason that Mr. Jarvis and Mr. Hislop met as
board members and fired Allan Laird:
From Allan ( full documentation is available. This is
all public record and filed in the Sublette county courthouse.)
Here is a summary of the Farm out with Panonian.
AOW puts up about $500,000 to get the Gemini earning well started. Partners pay the rest to ensure that AOW does
not fail to earn the land.
AOW is then carried completely-- no capital required-- for a ten well drilling program over the next two years. AOW would pay nothing to receive 25% interest.
For the first ten earning wells, and the next 110 potential locations on AOW land, AOW would receive a cash payment of
$100,000 per well before each well is spudded. During the
field development,the cash payments could potentially total
120 x $100,000 = $12.0 million dollars.
After the carry on the first ten wells. AOW would continue to receive the $100,000 per well, but would only have to pay " one-eight to earn one quarter". With this built-in
promote or carry, AOW would likely require no additional capital and instead would receive a net cash payment at the time each new well was drilled, with an ever-increasing cash-flow from the Warbonnet, Gemini and the next ten earning wells.
Finally, to ensure that AOW can fulfill its obligation on the first Gemini well, Partners agree to pay $230, 000 for the Madera property. Yes, this is the same property that
Mr. Jarvis wants to sell Mr. Hislop for $200,000. |
