Hi Johnny,

My understanding is the exploration contract runs until December of 2011. If they make a discovery it would be extended to a development phase that will last for the next 20 years. If they do make a discovery and go into a developmental phase Continental will receive a $3,000,000 Bonus from Kunlun Energy + their 18% of the well. If no find then the property can revert back to the government or they ask for another extension as was granted in 2007.

Let's hope they drill early in 2011 and have a nice find.