In the restructuring agreement with Hellenic Petroleum SA (Hellenic) of Greece, Ramco has agreed to exchange its interests in all three blocks for an option to rejoin the acreage after the first exploration well has been drilled.
Ramco through its subsidiaries holds a 40% interest in all three blocks offshore Montenegro and has undertaken certain obligations to fund an exploration well and other technical work.
These obligations will be undertaken by Hellenic, and the related Ramco performance bond will be released, following the completion of negotiations with the Government of Montenegro and completion of other legal formalities required to transfer the interests in the blocks.
Following the drilling of an exploration well on the acreage Ramco will have 120 days to elect to rejoin the acreage for an interest of up to 15% in all of the blocks. Ramco's past costs in Montenegro will be taken into consideration in the calculation of the exercise price for the interest in the event that it elects to exercise the option.
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