To the best of my knowledge, here are the basics...
Erin had a 50/50 joint venture with the state owned power company (Electro Providia ???). The terms of the original joint venture called for Erin to spend $2,670,000 on a research and reserve study leading up to a feasibility study.
Upon agreement that a feasibility study would be undertaken, each partner was to provide 50% funding for all future work. To the best of my knowledge, most (but not all) of the required expenditure had been made by Erin when the current political problems erupted. The original deadline date for the completion of the expenditures has come and gone, but due to the political situation at the time a "force majeure" had been declared on the original contract. The two partners have some sort of non-formal agreement to extend the original joint venture agreement when things return to normal.
Note that the above is my understanding of the current situation and I may be wrong on some specifics, but I'm fairly sure I have the gist of it correct. To the best of my knowledge the project is still alive (although currently dormant). Definitely what is required beyond all else to get this project going again is a "normalization" of the situation in Yugoslavia/Kosovo and the dropping of trade restrictions by the US and other international participants. It is my understanding that countries such as Greece, Italy, and France strongly support the easing of trade restrictions as soon as possible and are applying political pressure to achieve that goal ASAP.
IR would definitely be helpful in answering your questions and filling out some details, at least they have always been helpful for me in the past.
The AGM is also coming up, October 23rd in Calgary (I believe) and I will likely be attending. If you are able to attend, I'm sure many of your questions would be answered at the AGM. For those who are not able to attend, and if I do attend -- I will post a summary of the meeting here. |
