Hi Jim; It appears to me that at this very minute SNG recognizes CHQ has 25% WI rights in Block 5(C) as the sale by Scotia/Waterous of SNG's interest in Block 5(C) is stated as 45% on their virtual data room. SNG recognizes CHQ's interest as 25% but again this is subject to CHQ paying its share of the bills on #3. The deal was between CHQ and SNG. If SNG were to ask for CHQ shares instead of the cash it is owed the CHQ shares would be valued at $3.00 per share (I read somewhere this was the agreed upon price when the JOA was signed) so it is unlikely that SNG would ask for CHQ shares unless the SNG Board of Directors knows that they will be able to sell those $3.00 shares for more money in the near future.

Cheers; Scott