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In August 2008,
Venturoil proposed a Work Program and Budget which form the basis for their due
diligence during their option exclusivity period which ended in March 2009.
Venturoil’s work program included G & G studies and reservoir simulation. An
extension was granted by the Bonita Block consortium until September 2009 in
order for Venturoil to complete their original and amended work program with the
end view of submitting a drilling prognosis and program for the different areas
that they are faming into, including the Bonita Block.
Similar to the
SC 6A Octon Block, Philodrill had a series of negotiations with the DOE during
the first quarter of 2009 for the extension of the production term of SC 6B –
Bonita Block contract which expired on February 28, 2009. In support of the
request, Philodrill submitted Venturoil’s proposed work program as the Bonita
Consortium’s commitment. In June 2009, the DOE granted the extension of the
production term of the contract on similar terms and conditions as that of the
SC 6A extension and likewise reckoned from March 1, 2009.
In October
2009, the Bonita Block Consortium informed Venturoil that they no longer have
the right to the option on the block and that Venturoil should be recognized
first by the DOE as a qualified service contractor should they pursue
negotiations for farm-in into the block. |
