GulfSlope Energy Inc (GSPE)

[Gspex]

During exploration, Gulfslope personnel are in charge of drilling operations and are responsible for figuring out where the well goes and how it gets there. Delek at that stage can make suggestions, or try to get things to go their way, but the ultimate decisions are up to Gulfslope. In development the scale of operations goes up astronomically. Many wells have to be drilled, the operator has to get a big production facility constructed, pipeline tie ins have to engineered. It’s much more engineering driven, and has much less geological input. As a pure exploration outfit, Gulfslope probably has little interest in running a development. They would probably be happy to just turn it over to Delek and collect their share of the proceeds, while moving on to the next exploration well. Delek may not want to do a big development project either, but they have that option. Let’s hope this becomes an issue.