Forfeiture of Rockies Oil to its Interests in the Farmout Agreement Term Paper

sacrifice of Rockies anoint to its Interests in the Farm come to the fore transcription - Term Paper ExampleRockies Oil should not forfeit its amuse in the Farmout Agreement, as it is quite clear from current situation that Aussie Oil has succeeded in producing results and there argon better chances in future, as the involved parties anticipate that Bigger Field will produce double as much oil as expected. Previously Rockies Oil regarded that all their m unmatchabley got wasted because of chastisement of first two oil wells but with the recent success, the company has some hope in the newly drilled well and also the coming explorations. Therefore, the joint venture should be retained.As for now, Rockies Oil has not paid for the third well. Aussie Oil asked the company to support $ 400,000 for the third well but it refused to pay because of previous failures. However, now, there trick be some arbitration process hiring three arbitrators, one from Aussie Oil, one from Rockies Oil and one neutral to resolve the dispute so that Rockies Oil can get its partake in in the production of oil from the third well along with Bigger Field. Nevertheless, in this situation, the company has to pay off the costs involved in digging the well and the coming costs for new tests. The fact should not be looked over that risks are involved in every business.MSOC (Molvanian State Oil Company) has refused to consent the duty assignment of Farmout interests to Rockies Oil because the company has not paid the costs for the third well and also refused to buy a new SUV to the Financial Officer of MSOC for inspecting Bigg and Bigger Fields. MSOC should be made to allow Rockies Oil to continue with the Farmout Agreement and for that, there should be some dealing with the company. A representative should be sent to sort out the issue with MSOC and the objections of the company should be notified and resolved accordingly.Rockies Oil after its merger with Scots Oil Co. can share the in formation about the third well because, after the merger, the new company will be its part then. Rockies Oil shouldwait till the merger is finally done.