GulfSlope Energy Inc (GSPE)

[MktMvn]

Well, the thing that jumps out is that Delek is now 22% owner of an exploration company in the GOM. The only two choices they have are to just write it off as a bad bet, or continue to drill the portfolio of the exploration company. I would guess they will be reluctant to just drop it. But now that they have found out how expensive exploration can be when there are problems, they will probably try to change the terms to reduce their cost exposure.
At this point Gulfslope has no obligation to drill another partnership well, since Delek didn’t exercise their option for the next two-well package. So they may just decide to move on from Delek and find a new partner. Or Delek may hang around with a reduced interest in a three company partnership. Looks like Gulfslope is trying to move on with the program. We just don’t know who else will be involved.