Dear Doha1, thank you for your inquiry. As stated in the most recent FORM 10-QSB filed with the SECURITIES AND EXCHANGE COMMISSION (SEC) on November 19, 2007:
Joannou & Paraskevaides (Overseas) Ltd. (“J&P”) and JOL had an agreement with respect to J&P being a Founder Shareholder of Omagine SAOC and the General Contractor for the Omagine Project(the “J&P Agreement”). J&P informed JOL in October 2007 “that,in light of their current and future workload, J&P wished to withdraw from the Omagine Project” and the J&P Agreement was terminated. J&P has only a few clerical employees in Oman and would have had to mobilize and transport all employees and equipment into Oman subsequent the Financial Closing Date (which date itself will be at least 6 months after signing the Development Agreement).
CCC, on the contrary, has its machinery, equipment and a workforce of 6,000 employees currently in Oman and thousands more employees in the nearby GCC countries. CCC moreover is approximately 5 times larger than J&P in terms of revenue and at 125,000 employees, employs approximately 8 times as many people and has significantly greater resources than J&P.
Significantly, the CCC Agreement as presently contemplated is also more advantageous financially to JOL than was the J&P Agreement and CCC, unlike J&P, is able to mobilize and begin construction of Omagine immediately after the signing of the Development Agreement and the CCC Agreement requires CCC to do so.
Consequently, management believes that the termination of the J&P Agreement will not have any negative effect on the Company’s business and the CCC Agreement will have a Materially positive effect on the Company’s business.
Regards,
Agoracom Investor Relations
