M.M.,
This is the way I "read" it.
~~"SALT LAKE CITY, Sept. 5 /PRNewswire/ -- Patroclos Finanz AG (Patroclos) a wholly owned subsidiary of Zuerich Holding
Company, and Union Pacific Resources Group Inc. (NYSE:UPR) today announced a clarification of their relationship. The
purpose of this clarification is to avoid any misconceptions which might have arisen from recent press releases and Internet
communications relating to Patroclos, UPR, and North American Exploration Corporation (NAMX)."~~
The obvious point taken here is that UPR wants to make sure any and all understand how UPR is related to NAMX. I believe it is an attempt for UPR to distance themselves, not so much from NAMX/Patro, but, from the rhetoric associated with them.
~~"Patroclos has entered into a farm-out agreement with UPR covering 1,280 acres in Cheyenne County, Colorado. Patroclos has
designated NAMX as its North American operations nominee as well as its North American licensee for commercialization of the EM Sounder Technology."~~
Patro is the only entity negotiating with UPR. Patro has some sort of agreement with NAMX, but, we are left wondering what that arrangement is or how that affects OUR bottom lines as well.
~~"Earlier this year Patroclos funded the drilling of two wells on farm-out acreage, with UPR acting as the operator. The wells have been plugged and abandoned pending a detailed independent technical evaluation."~~
I was under the impression that this "technical evaluation" was to be released last month. I guess not.
~~"These wells earned Patroclos a 50 percent working interest in 960 acres of the UPR lands. Patroclos has designated to UPR the site location for a third well to be drilled under the farm-out agreement."~~
I don't understand this at all. Earlier in this release, it stated that Patro had entered into agreement on a farm out covering 1,280
acres? Which is it? And what third well? I was under the impression that three wells HAD been drilled- two productive and capped and the third, a non-productive which was deemed a success by EMS-SOUNDER.
~~"Negotiations between Patroclos and UPR are ongoing concerning a further drilling program involving 50 additional wells."~~
Another 50 wells on top of the previous mentioned 50 wells?
~~"Patroclos is also negotiating with other North American producers for similar drilling programs in areas deemed promising by
Patroclos."~~
THIS is more like it. Now we see that Patro is checking with other prospects. Smart business move. Don't rest on your laurels......, but, until we know what's in it for NAMX, we are back to square one.
~~"UPR is not a party to any of Patroclos' activities involving third parties."~~
Don't misconstrue that UPR is advocating EM-SOUNDER to any other party.
~~"UPR has no experience with nor specific knowledge of the workings of the EM Sounder technology. The use of this technology on UPR lands is not an endorsement by UPR of the validity of the technology. Further, UPR has not contracted with Patroclos to employ the EM Sounder technology on its Land Grant acreage."~~
REAL obvious they don't want to be accused of promoting anybody else.
They also don't want to be accused of promoting the SOUNDER. Basically, you have UPR agreeing to let Patro dig anywhere they want and if you find something, let us know.
~~"In the event UPR and Patroclos reach an agreement,
Patroclos intends to use EM Sounder data in its selection of drill sites on lands covered by the agreement, among others, with
the EM Sounder equipment. Patroclos will offer its EM Sounder data to UPR once it has been gathered and processed."~~
Bad news and good news. First, UPR and Patro have NOT reached an agreement--yet. I thought that was a done deal. Second, the good news is Patro states it fully intends to use EM-Sounder data, which means they will have to use NAMX.
~~"UPR has been active for more than 25 years in eastern Colorado and has drilled more than 600 wells. The gas plant is being
constructed to support UPR's helium operations and is being made available to support the helium operations of other
producers in the area who sign processing contracts with UPR. Patroclos has signed an agreement to have any gas discovered
under its current farm-out agreement processed in the UPR gas processing plant."~~
Others are drilling for UPR as well. I imagine that the drillers that have the better hit/miss ratio will profit the most, hence the betting on EMSOUNDER by us investors (lousy grammar eh?). Patro has at least one agreement under its belt; the gas is to be processed at the UPR processing plant.
My synopsis is as follows:
UPR is reiterating its working relationship with NAMX. Namely, that it is working/negotiating with Patro alone. Patro is negoitating with NAMX. We are again left not knowing what is in it for NAMX. I believe that a press release sometime back stated that Patro had "assigned the [capped] wells over to NAMX". Alas, I can not find that release. It has either been pulled due to its date, or just pulled. I'm confident that Patro will do right by NAMX as one needs the other. Negotiations are taking place between UPR and Patro, that is good news--at least they still have a working relationship. I'm also pleased that there are on going negotiations with "other" players as well. I will be more pleased when NAMX can announce real numbers on earnings and expenditures.
Well, that's my initial reaction. Feel free to dissect it any way you want!! <G>.
Theo |
