Scandinavian Oil-Gas Magazine
http://www.scandoil.com/moxie-bm2/news/megawest-resolves-kentucky-commitments.shtmlMegaWest resolves Kentucky commitments
MegaWest Energy Corp. has reached an Amending Agreement with its joint venture partner Kentucky Reserves II, LLC (KRII) to resolve its outstanding work
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MegaWest Energy Corp. has reached an Amending Agreement with its joint venture partner Kentucky Reserves II, LLC (KRII) to resolve its outstanding work commitment under the Kentucky Purchase Agreement.
Pursuant to the Kentucky Purchase Agreement, MegaWest was obligated to spend U.S. $15,000,000 by October 2009. In the event MegaWest did not complete this work program, the Company was obligated to pay 37.5 percent of the unspent balance to KRII. As of January 31, 2009, MegaWest had spent $4.8 million towards this commitment.
Pursuant to the Amending Agreement, the work program obligations and the attendant penalty payment provisions will be terminated. In return, MegaWest will reduce its working interest in the shallow rights from 62.5% to 37.5% and will transfer operatorship of the leases to KRII.
