http://www.gulfkeystone.com/ The firms exploration programme in Algeria is going well and "the shares look good value", say the Investors Chronicle. Your comments please. goal.

from page 13 of my notes)

Rex Wempen had agreed that he wanted to set up a fund, otherwise others would 'jump ship', and then:

GKP barrister: "You wrote 'we have to come up with the 30%...(...)...except that we will be faced with the terrible capital call'"

He then repeated the following statement twice, according to my notes:

"This shows that you were alarmed that a done deal would bring with it heavy financial commitments"

and he then went on:

GKP barrister: "Why was it a terrible call?"

Rex Wempen: "Can't.....why I used that word" (I wasn't able to keep full pace with what he said)

GKP barrister: "If Excalibur was party to a PSC it would have had financial commitments"

Rex Wempen (said something about 30%, I couldn't catch it exactly)

GKP barrister: "You thought you had an indefinite carry at LIBOR plus 2%. What forfeiture provision would you have agreed? You realised that Excalibur's ability to meet these capital calls was difficult and that's why you called them 'terrible'"

Rex Wempen: "I appreciated that capital would be needed"

GKP barrister: "What is a capital call?"

Rex Wempen: "Under terms of agreement the Operator calls (for money). We were trying to get some funding ahead"

GKP barrister: "In Spring/early 2007 you were trying to 'raise funds' ahead of a signature deal?"

Rex Wempen: "I agree. In view of the high-risk nature, the backers advised us to get a deal first in Congo, Uzbekistan or Kurdistan"

(then there was a break)

So it seems to me that it's the same old thing, over and over again. Excalibur had no money to invest, but had gone for a 30% position rather than a Finder's Fee. But there was no asset - so anyone putting money into a fund would not know what it was going to be used for - and they would presumably have no control over such use. Therefore the asset would have to be acquired first. But that would mean that Todd Kozel would have to arrange for the 100% to be put up, with Excalibur then on a "carry" at LIBOR plus 2% until some undefined future period. And suppose the well was a dry hole? How would they then raise the funds to pay Todd Kozel's company/companies back? How could one possibly get funding for a dry hole?

but imho DYOR etc as always, given in good faith, this is not legal advice I am not qualified to give it

no, but it makes for a fun read!
i look forward equally to the defence's turn to trash the GPK management who, from what little i have seen, look to be similar "wide boys" - except they hold the asset

20:32
Court overview
seebeearrgh
34
As you've probably gathered I'm not a great note taker or reporter so from today a brief summary

JG has hardened up and is more pressing with questions and has spent further time addressing the GKP and TKI relationship according to RW. When it suits to have GKP as main company thats fine but when TKI need to be named its always on the understanding that the also mean GKP.....repeated in lots of varying senarios

I have not heard one answer that causes me concern, quite the contrary, at best a very poor and waffled response, at best (for us) almost contemptable answers.

Rex once again vehemently denies any wrong doing as far as Us dept of commerce is concerned regardingnot naming GKP as main partner instead showing TKI which is documented partner thus showing 100% US consortium?

Emails that misrepresent or tell untruths are once again described by RW as motivational, in order to provoke action!

Some more provocative lines by JG
-that isn't true so why don't you admit it
- these weren't witness statements, they're more of a sales pitch
- I'm suggesting that you're being a bit slippery
- You would have been recealed to be a charlatan
- presenting an investmentment bank with dross and get them to turn it into gold

The Judge has intervened again several times today in order to try and elicit a straight response from RW

During the afternoon brief interval we had a short interaction with TK and JG and I am as sure as I can be that we have nothing to be concerned about. TK is well aware of his surroundings and understands the protocol of being on the stand. I am under no illusions what the defense team thinks of RW and his evidence.

With regard to the Jewish chap. He is clearly something to do with RW/EX but who knows? We are looking into this as we can recall his face and will report any findings.

Had a few beers with bobobob and chewed the fat, no doubt he will do a verbatim mega blog on the other channel.

a4tlo has just arrived so gonna have more beer.

imo- JG has a lot more to bring up and a lot of banked stuff to recap on....turn up the heat please

nige

----------------------------------------------------------------------

18:16
No meat update
pauldb71
110UP


Just before Todd left in his Range I had a very quick word with him. It was a quick fire question and a short but passionate reply. Not sure it's my place to repeat ( yes I know people are sick of statements like that ) but what I will say is I can see why he hasn't gone for a settlement of any kind. He, in my opinion, wants not only to defeat RW but now wants to bring him down to ground zero. It was good to look him in the eye and I loved what he showed and said in his reply.
Oh and our main learned friend representing GKP, he is a multitasking duracell bunny pitbull, great to watch.
And for those who remember Newman & baddiels History Today 'that's you that is' sketches, the judge is new and character.
Thanks to John earlier for posting my lunch report, although the dufus got my ID wrong the 3G during the breaks is pants and I couldn't get to post, could be a reason why we don't here much during the breaks.
I plan to go again when Todd takes the stand, I suggest others go when ever they can, it's good theatre albeit with serious repercussions for the losing party.
To recap simply, i sit here happy with my investment

------------------------------------------------------------------------------------

21:36
court - It was
reebar
3UP


most entertaining as usual and is giving the tv a run for its money. I don't even even miss Bargain Hunt or Shaun the Sheep any more. There was at least two GKP note takers at hand so better to leave to them, to post the important stuff.

Big Rex, ( may peace be upon him) was in his corner with a fresh suit and no sign of any strain on his face. I for one, have to give him credit for being the best fibber I have ever seen in all my years. JG keeps keeps trying to award him fib points but he just refuses them.

When caught out on one of his emails that was an undeniable fib, he almost admitted it. He came out with " I did gild the lily a bit ". A great big whopper was reduced to just a bit of the old gilding. Very slippery is Big Rex. The catch the greased pig competition I seen once at a county fair comes to mind.

I notice he has stopped using " in the Abstract " and has come up with another dandy. This is another one for the wife. Several times he started his answer " in the hypothetical ". Had me bamboozled as I thought the old ears were playing up. That was until our fine judge asked him to stop using the word in his answers. Then he asked Rexy if he knew the meaning of the word so I guess we won't hear that little confuser any more.

His other favourite is " I can't recall ". This phrase was used by President Reagan 88 times in eight hours when he was called to give defence testimony in the Iran-Contra affair interspersed with another favourite of Rex " I can't remember ". Reagan was 79 years old at that time and had started to develop Alzheimer's. What excuse can Rex give.

The jewish gentleman was there and from the body language did not look happy. I have no idea who he is but he seems to be important to everybody on the Rex side. In the afternoon he closed his eyes and leaned back in his chair. This was at a bad period for Rex as JG was landing some heavy blows. I think he may have been praying for a miracle.

He is short and stocky, about 5 foot 6, scraggly salt and pepper beard, shorted sighted, and big feet. He also has an unhealthy cough. Anybody know him?

As he walked by me later I could almost swear I heard him mutter something about flesh. Must have been the old ears acting up again.

--------------------------------------------------------------------------------

Quite frankly, I don't know where to start. I have 22 A4 pages of notes from today.

So, let's start at the very beginning, a very good place to start. Up pops the Excalibur barrister, with a complaint to the Judge (though it wasn't a complaint - because black is white, don't you know?) about expert witness statements. He didn't like the way that they were continuing to arrive. He wanted to have a discussion with the Judge about it, some time later in the week.

But the GKP barrister didn't see the point, since the Judge had not yet read the expert evidence, so how could it make any difference if more of it had turned up? And an expert report received yesterday by Clifford Chance was actually a report on Mr. Wempen's earlier evidence.

The Judge was having none of it.

But the Excalibur barrister came back. seeking the Judge to agree a timetable to discuss the issue of the expert evidence.

The Judge slapped him down; the Excalibur barrister kind of troed to reply with some half-hearted comment and the Judge said "We'll see how we go".

And the day's business began.

Judge 2, Excalibur Barrister 0 (yellow card)

From the small hours of the morning.


What's the next thing I should mention?

Let's go to the bottom of page 6 of my notes, (H20 5345 I think) Excalibur's application to the US Department of Commerce. The following is an outline, in good faith, with some abbreviation and paraphrasing.

GKP barrister: "There was no need for 'optics' as far as the US Department of Commerce were concerned? Yes or No"

Rex Wempen: "No need for 'optics'. Seeking US advocacy for a US branded proposal"

GKP barrister: You've confirmed that you were not concerned with 'optics'"

Rex Wempen: "Want to be careful to explain what's...."

GKP barrister: "No (something) to tell the US Department of Commerce to tell them anything other than the real issue"

Rex Wempen: "No need, Department of Commerce were advocating for US companies, as US flag consortium"

GKP barrister: "They wouldn't have been interested in providing support for a consortium in which the majority partner was not US. You represented that this was a wholly US initiative"

Rex Wempen: "I don't believe the document is untrue"

GKP barrister: "It said 'From December 05 we have been working with Texas and Dabin'. 'Texas as operator and Excalibur as financial investor'. Why no mention of Gulf? You are talking about your consortium?"

Rex Wempen: "Wanted support for the consortium"

GKP barrister: "You said in 5/6 May emails that is was 3-way"

Rex Wempen: "Yes"

GKP barrister: "Why did you not mention this in the application to Mr. James? (bob: the man at the Department)"

Rex Wempen: "It was a US consortium"

GKP barrister: "You would only get US advocacy if you could confirm that it was a totally US consortium"

Rex Wempen: "It would be a US consortium supported by Gulf"

GKP barrister: "You were lying to the US Department of Commerce"

Rex Wempen denied this.

GKP barrister: "'We are requesting advocacy to level the playing field against non-US companies'. What non-US companies?"

Rex Wempen: "Russia and China, state-owned Middle East companies"

GKP barrister repeated the question "What were the non-US competitors?"

Rex Wempen: "Moscow, Dubai..."

GKP barrister: "Not Gulf"

Rex Wempen: "No"

GKP barrister: "We'll see how we go. Evidence #5348. You certify the content of this document to be true"

Rex Wempen: "It was true"

GKP barrister: "Look at #5349. Description of (something). A completely US consortium consisting of Texas and Excalibur, based on Texas Keystone administered field survey conducted... Which survey did you have in mind?"

Rex Wempen: "Gulf had done some. Texas administered. Personnel on the ground from Gulf"

GKP barrister: "Who administered it?"

Rex Wempen: "Mr. Kozel. believed they had been doing some work on the ground. In Mr. Sammarai's (written evidence?). All under the administration of Mr. Kozel, who puts his Gulf hat on, and then puts his Texas hat on"

GKP barrister: "Why did you not mention Gulf? You described it as a completely US consortium. You must have known this was untrue. You have claimed it to be 3-way. How can you say it was 2-way?"

Rex Wempen: "2-way in (something) operator and branding. All thre members of the consortium, Todd would have split it 35/35 or 65/5 or whatever..."

GKP barrister: "Question 8: are you bidding in a consortium or (something). You answered 70% Texas, 30% Excalibur. You had mentioned Dabin"

Rex Wempen: "I just don't see the contradiction here"

GKP barrister: "You don't (something)"

Rex Wempen: "I was not telling a lie to the US Government"

GKP barrister: "#5352. I asked you if competitors included Gulf. You said 'no'"

Rex Wempen: "I see RAK is included here as a competitor. If RAK had not...."

GKP barrister: "Why did you mention RAK Dubai as potential competitors, other than as a potential part of GKP? You were not seriously concerned that RAK was a concern *other* than if there was a takeover of GKP (bob: by RAK). This is exactly what you were concerned about. Your communication of 5/6 May 'Arabs in their flowing robes would turn up in Erbil'. I'm wrong am I when when I read the #5352, reference to RAK as having anything to do with Gulf"

Rex Wempen: "You are wrong to read it that way"

GKP barrister: "Looking at it now in retrospect, is it surprising that there was no mention of Gulf?"

Rex Wempen: "No"

GKP barrister: "Not in the slightest?"

Rex Wempen: "No"

GKP barrister: "Don't you think that the transfer facility TKI-GKP was relevant to the Department of Commerce?"

Rex Wempen: "Not at the time"

(and so it goes on. Previously stated caveats apply to the above)

">

http://www.reuters.com/article/2012/11/07/us-iraq-exxon-idUSBRE8A60Y420121107

part of iraq oil report:

By Patrick Osgood of Iraq Oil Report
Published November 8, 2012 ERBIL - A new Turkish state oil and gas company is negotiating with Iraq's semi-autonomous Kurdistan region to take stakes in several exploration blocks – a development that would signal dramatic headway for the Kurds in their quest for oil sector autonomy.

No contracts have been signed, but four officials familiar with the talks confirmed that negotiations have reached an advanced stage.

The new Turkish company is looking to enter at least five Kurdish exploration blocks, according to the offic...

http://www.investegate.co.uk/gulf-keystone-petrol-%28gkp%29/rns/sheikh-adi2-exploration-well-discovery/201211080700206097Q/



"We are very pleased with the outcome of the second exploration well on the Sheikh Adi Block, which is in on trend with Shaikan, our major commercial discovery declared earlier this year. This most recent exploration success points to the significant potential for further growth and future synergies across our world-class acreage in the Kurdistan Region of Iraq."

21:49
Court 7/11
seebeearrgh
22UP

No notes made today but a few points worthy of mention from memory.

Mr "sliipery" Wempen has been shown to tell porkies today..more than once

When giving conflicting evidence he was asked.'is your wriitten evidence or your verbal evidence correct?'

Blackmailing TK was discussed in an email from EW to RW

During the mid morning break the right side of the court (GKP) was quite noisy and bouyant, quite a contrast from the left which was quiet.

Sorry nothing specific but I'm sure our great reporters are on to it.
Great to chat with others today.

JG warming up ad doing a stunning job.
Reassured more each day.
Still the big question....how the hell did this case get to court?

Nige

- Blackmailinging TK was discussed in an email from EW to RW"
The Wimpens really are something special !!!

-----------------------------------------------------------------------------------
http://www.iii.co.uk/investment/detail/?display=discussion&code=cotn%3AGKP.L&it=le&action=detail&id=10165043

---------------------------------------------------------------------------


The next section focussed on an email exchange between RW and Eric where RW was saying he wanted protection if the agreement came under international scrutiny. JG suggested his security clearance may be jeopardised if the tide changed and the PSCs were seen as politically undesirable.
RW said he was nervous as he’d just been cut out of the deal and was having some reservations about the entire activity. Worried he wouldn’t receive any monies, and trying to settle the dispute with Gulf. Concerned that the PSCs from which the monies were derived should be seen as legitimate activities, and if Gulf had done anything ‘improper’.

JG Was this another reason Excalibur might not want to appear on PSC, given the situation in Kurdistan was so volatile?

RW I don’t see why this would be an issue.

RW emailed Eric on 25th November 2007, after the PSCs had been signed) forwarding an article mentioning that Baker’s (?) role in the Hunt deal had annoyed the US Govt and the Iraqis. There was hostility within the US Govt to signature of the PSCs with the KRG. The article said the agreement could have no legal standing.

JG You knew the US Govt would frown on the PSCs. This is why you wanted the deal done ‘under the radar’.

RW I wanted to keep it confidential and was aware of the complications, however, this didn’t outweigh getting the deal of a lifetime. I couldn’t conceal it from the US Govt.

The next part revolved around ‘parallel’ routes via lobbying by certain people to Barzani. There was a ‘packet’ that was to be hand-delivered to Barzani by Keith Schuette. This was delivered by RW to KS at his yacht at a dockside location.

JG asked what was in the packet and why did it have to be delivered by hand. RW said it was a presentation which was too big to email. Who wrote it? ‘I believe I did’. RW didn’t remember if there was a covering letter. He was trying to speed up proceedings by using ‘friends in Washington’. Bringing it to the forefront of Barzani’s mind. JG suggested that the idea of lobbying was to get US politicians involved who looked favourably on Kurdistan.

Then there was mention that it was a one page letter with no attachments and that it was a detailed counter offer to the one made by Dr. Ashti. Then there was talk of supporting documents.

JG said it was clumsy and misguided and that it did no good.

RW It was not clumsy and misguided and lobbying happens every day.

JG : Dr Ashti has said that Excalibur was guilty of serious misdemeanours.

RW : He’s entitled to say what he wishes to say. I don’t know what he was referring to.


We now jump to November 2007. An email from Eric to RW after they had been cut out of the deal.: ‘chances are they won’t strike oil anyway’.
The email referred to ‘every conversation will come up’ and mentioning TK cheating on his wife, and ‘payoffs to Barzani’.

JG suggested this amounted to blackmailing TK and his wife regarding his infidelity.

RW said they were angry they had been cut out of the deal of a lifetime.

JG : How would you characterise this if not blackmail?

RW : We were angry.

JG (Exasperated) Yes, let’s assume that. Why is this not blackmail?

RW : Eric was having a stream of consciousness moment, but we didn’t do it.
(I loved this bit!!!)

JG : Were there payoffs to Barzani?

RW : This was Eric being creative.

JG : Are you suggesting that my client was involved in a payoff? What were the payoffs you had in mind?

RW : We didn’t have any payoffs in mind, though we could accuse TK of this.

JG: So you were considering putting a gross libel into circulation?

RW : View it in the context that TK had just cut us out of the deal. I didn’t know we’d end up in this situation. Nothing was done about it.

Judge : So there were never any payoffs to Barzani?

RW : No. Some things were clearly inappropriate but we never did anything inappropriate.

JG : So there were no payoffs to Barzani?

RW : No.

Well RNS as i felt was due. 80% for uGKP

From a v knowledgable poster.


from bbbs on other board

Hi BBBS. W'd you pls. put today's RNS in a language that a lay person like me understands?

===============================================================

Hello AUDIRS6,

The RNS is fairly is pretty much self-explanatory (IMO):

- "Provisional results indicate the oil gravity is similar to that found in the same formations in the Shaikan Block namely 15-18 API." Just join up the dots ....


- "In line with the Sheikh Adi PSC, following the notification of discovery, the Operator will submit a Discovery Report ...". Oh dear, not another DISCOVERY.

- "Gulf Keystone is the Operator of the Sheikh Adi Block with an 80 per cent working interest, while the Kurdistan Regional Government has a 20% ...". Oh dear again, only 80%

- "Todd F. Kozel, Gulf Keystone's Executive Chairman and Chief Executive Officer commented ...."We are very pleased with the outcome of the second exploration well on the Sheikh Adi Block, which is in on trend with Shaikan, our major commercial discovery declared earlier this year. This most recent exploration success points to the significant potential for further growth and future synergies across our world-class acreage in the Kurdistan Region of Iraq.". Will you guys please just LISTEN to Todd?:

. ON TREND WITH SHAIKAN. (also review the SH-4 results on this side of that fault ..)

. SYNERGIES ACROSS OUR WORLD-CLASS ACREAGE. (check the meaning of 'synergy')

If Todd's shouting, then maybe it's ok for me to pipe up again too.

GLA,

And from Zen,so 80% of 2.4 = 1.92bbo to GKP?


A great result considering this is an 80% interest.

4 zones between 1420m - 1700m.

Bijeel zones were lesser and initially amounted to 2.4 billion bls in place mid case.
-----------------------------------------------------------------------------

http://www.iraqoilreport.com/politics/oil-policy/turkey-preparing-major-kurdistan-oil-entry-9253/?utm_source=Email+Update+Subscribers&utm_campaign=0986132923-Email_Update&utm_medium=email

Shame the sp isn't rising more .....

All in good time rf, no gas and billions of barrels of lovely black stuff.,.

I'm surprised their's no comment on post3692,

By Patrick Osgood of Iraq Oil Report
Published November 8, 2012

ERBIL - A new Turkish state oil and gas company is negotiating with Iraq's semi-autonomous Kurdistan region to take stakes in several exploration blocks – a development that would signal dramatic headway for the Kurds in their quest for oil sector autonomy.

No contracts have been signed, but four officials familiar with the talks confirmed that negotiations have reached an advanced stage.

The new Turkish company is looking to enter at least five Kurdish exploration blocks, according to the offic...


This will really upset the ICG and could lead to indepedence for the Kurds?

http://www.investorschronicle.co.uk/2012/11/08/shares/news-and-analysis/news-tips-gulf-keystone-balfour-beatty-wm-morrison-rightmove-supergroup-btg-spirent-more-mbkceAcdP1OG4b9m31tmiP/article.html

The second half of the WHI Note gives some more exciting developments which will get our hearts ticking IMHO....

· We anticipate further positive news from Akri Bijeel where Gulak-1 and Bakrman-1
exploration results are due by the end of 2012. We believe that, following a period of
significant underperformance in the stock due to the ongoing legal case with Excalibur
in the London courts, this exploration find provides a unique entry point for investors to
leverage on this weakness.

---------------------------------------------------------------

Gulf Keystone Petroleum confirms new discovery
By Darshini Shah | Thu, 08/11/2012 - 09:32

Gulf Keystone Petroleum (GKP) has made a new discovery in the Sheikh Adi Block in the Kurdistan Region of Iraq.

The Sheikh Adi-2 exploration well on the block has achieved aggregate flow rates of 4,235 barrels of oil per day across four reservoir zones at measured depths of between 1,420 metres and 1,700 metres – the Upper Butmah, Adaiyah, Mus and Sargelu formations in the Jurassic. The well is located immediately to the west of the Company's Shaikan Block, which is a major commercial discovery

The well was spudded in May 2012, 1.45 kilometres to the north of the Sheikh Adi-1 exploration well, and was drilled to a total depth of 2,754 metres in September 2012.

Gulf Keystone, the operator of the Sheikh Adi Block, will now submit a discovery report to the Sheikh Adi Block management committee within 30 days. It has an 80% working interest in the block, while the Kurdistan Regional Government holds the remaining 20%.

"We are very pleased with the outcome of the second exploration well on the Sheikh Adi Block, which is in on trend with Shaikan, our major commercial discovery declared earlier this year," commented executive chairman and chief executive Todd F. Kozel.

"This most recent exploration success points to the significant potential for further growth and future synergies across our world-class acreage in the Kurdistan Region of Iraq."
Analyst view

Analysts at FoxDavies said the news that Sheikh Adi-2 had flowed oil to the surface was a “boon” for the development of the region: "Given the minimal separation between the Sheikh Adi location and the nearest collection hub for Shaikan, we believe that this will be brought on-stream quickly alongside Shaikan.

"Given the success of Sheikh Adi-1, we had largely de-risked the reserves associated with this accumulation and had already factored that the production would flow via the existing Shaikan infrastructure and would most likely be charged tariff or transmission cost opposed to having to invest in a separate production infrastructure."

They reiterated their ‘buy’ recommendation and 350p price target.
· Gulf Keystone remains one of our top picks in the sector given its ongoing exploration
success in Kurdistan, its low $/bbls valuation relative to similar peers, and takeout
potential which we see increasing following resolution of the Excalibur case. We
maintain our BUY recommendation and target price of 315p, and see a takeout value
using similar multiples to Genel/Vallares deal at 450p.

Surveillance ahead of Israeli strike on Iran in Q1 2013......... would make the whole middle east a big "avoid" zone.

http://www.foxbusiness.com/markets/2012/11/08/oil-markets-shrug-off-iranian-drone-attackfor-now/

pro must be bored, he has nothing to ramp atm.

A very dramatic day indeed in Court. Rex Wempen was hammered by the GKP barrister from the first ball, and it continued all through to close-of-play. There were around six quite significant interventions by the Judge, seeking to get Excalibur to answer questions or make their answers clear etc. I have 25 pages of A4 notes...on top of the 39 pages from yesterday...I am really not at all sure quite what to do with the content.

After lunch, the Clifford Chance team of two (sitting behind their remarkably silent barrister and his junior) was reduced to just one.

What seems, to me, to be happening is that after so many days of relentless cross examination, all sorts of apparent inconsistencies are appearing between Excalibur's written and verbal evidence, and between Excalibur's current and earlier verbal evidence.

All kinds of serious allegations and comments etc. were made today...imo it is starting to show signs of getting *very* ugly indeed.

Quite what the Excalibur barrister, Clifford Chance, and the Funder, think about the situation I do not know. But in my personal judgement, I would be surprised if they were happy with things. Just my opinion.

---------------------------------------------------------------------------
: OK, from the very close-of play, in order to avoid any selectivity. With some paraphrasing.

GKP barrister: "You said 'Thank you for the offer of the Interest Free Loan while our investment team is involved in closing funding'"

He repeated it: "'While our investment team is closing funding'. Will you put your hand on your heart and confirm whether this is truthful, or not?"

The Judge then repeated the question

Rex Wempen: "It is incorrectly written. It talks about our fundraising plan"

GKP barrister: "Don't you see the difference? Here you are, saying to Mr. Kozel 'While our investment team is closing funding'"

Rex Wempen: "Mr Kozel knew (bob: about Excalibur's funding position)"

Judge: "If he knew it quite well, why did you use this wording which is incorrect?"

Rex Wempen: "I don't know why I used the wording"

(my previous caveats apply. the above is given in good faith and is taken directly from my manuscript notes of today, p.25 and p.26)

Note for clarification: the reference to the "Interest-free loan" was Rex Wempen taking seriously a joke which Todd Kozel had made, about providing Excalibur with an interest-free loan if they couldn't find the money for the PSC signature bonus etc. Rex Wempen had earlier today admitted that it was a joke by Todd Kozel but prima facie he took it seriously for a few days and wrote the above.