Three years ago this coming October, my siblings and myself signed a three year lease with the option for two more years. At that time we were not aware the option was not a good idea. Question is now, with three months before the option runs out how likely Vanna to execute the option? Aware that the lease was sold to Mitsui, but my understanding is Vanna is doing much of the legwork for Mitsui now. Thanks in advance.
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Very likely. Mitsui has only two wells permitted in Leon, both this year. One has not yet started drilling. For the other, if they have started drilling, they have yet to get to their target. Mitsui spent a lot of money for many acres of rights. They aren’t going to walk away after putting so little pipe in the ground. You will get your option bonus in October before they know whether their purchase will pay off.