GulfSlope Energy Inc (GSPE)

[Gspex]

Their role is very passive. They won’t operate wells, and they are only a 5% owner of any reserves found. They will be required to pay their 27% share of the 10% of drilling costs not carried by Delek. They will also have to pay their share of evaluation and development costs. The effect of exploration success on their stock should be the same as for Gulfslope, only not as dramatic. If the partners find an elephant (Tau), 5% of it will be enough to make TXSO a substantial oil producer. 5% of a few million barrels (Canoe) won’t do much.