This could be big for KK if its true. I guess the totakl man would sell to KK first for obvious reasons. This may also explain the noise at KK.Is someone trying to drive the share price down so they can scoop up a good chance. I always get nervous when a share is been beat down. This is quite interesting.

1) There would be no preference for KK coz crude oil needs to be refined!

2) Oil drilling & production is a tricky business... It needs HUGE resources. Even Tullow is looking for partners with deep pockets!

Vituvingi is right. I am not an oil man but my reckoning;

1. Minerals found in anyone's land belong to the State. The state takes the land through police powers and compensates the owner not for the oil/minerals beneath but for the land.

2. An exploration co is licensed for the specific block to explore n establish commercial viability.

3. Once oil is found it is the property of the state. The explorer company enters into an agreement with the state, a drilling company and the refiner. The state gets royalties. Often the explorer just sells the rights to the wells to an oil mining company such as BP to recoup their heavy investments and move on to explore elsewhere..

KK or Total Man have neither the expertise nor the necessary wherewithal to operate at above levels. Nor can they squat on an oilfield to keep others off. But such cowboys can establish shell exploring companies, get block licenses cheaply using their state connections and then sell these on to real explorers.

Yes of course Mukiha. Nothing new; this is an ancient legal concept practiced worldwide. but I saw no need to break it down to the point of saying the legal owner of public land is the state whereas the public is the beneficiary owner. I stuck to the legal owner.