I wonder what this is about between ECU and GOG on the San Diego property.

"A total amount of $US797,038 was paid directly to the ECU Joint Venture in 2008. The total amount to date since commencement of the project in 2006 paid directly to the project is $US2,638,380. The total amount expended in on the project in Canadian dollars including associated expenses for the 2008 year and total to date is $927,765 and $2,982,949.

Details regarding the next phase of work to be completed on the project in 2009 has not been determined at this time.

Subsequent to the year-end the company became aware that its joint venture agreement (JVA) partner on the San Diego property is in breach of several covenants and representations made by it in the JVA. The matters are not in material dispute and the other party has advised the Company that it believes it will have these breaches rectified in the near future without cost or loss to the Company. The Company is monitoring the situation and may take legal action if the matters are not promptly resolved to its satisfaction. The Company, based on the response received from its JV partner on this matter at this time, does not believe that it is reasonable to expect that these breaches will cause a material loss to the Company."

Comment:

On the one hand the wording makes this sound like a mere matter of tidying up some legal loose ends that have no bearing on the San Diego project itself. But the reference to the details of the next phase of the work not being determined hints at the possibility that the two participants aren't seeing eye to eye. Or possibly ECU is much to busy developing its own 100% interests to invest much time or money on San Diego. I would hope that GOG provides some more encouraging news in the near future about their immediate plans for San Diego and gives an indication that they are getting along with ECU management.