Dear Omagine Investors,
Please be informed that Omagine has filed their Quarterly Report on Form 10-Q with the SEC for the period ended March 31, 2009.
An excerpt of the Report follows below.
To review the complete filing please use the link below, or to review all corporate filings, please click on the “View Filings” section of the main page of the Omagine hub here at Agoracom.
FORM 10-Q
Excerpt:
During December 2008 and throughout the first quarter of 2009, the Company and its attorneys remained engaged with the Ministry of Tourism in an attempt to conclude the Development Agreement.
These interactions and the official Government review and comment process for the November 2008 Draft Agreement resulted in a request from MOT to prepare yet another schedule detailing the Company's proposed changes to the Standard DA (the "Schedule of Changes"). The Company's attorneys prepared the Schedule of Changes and submitted it to the Government on February 17, 2009 together with an updated draft Development Agreement (the "February 2009 Draft Agreement"). The Government subsequently confirmed in writing to the Company that March 16, 2009 was the date that they would meet with the Company to discuss and conclude the Development Agreement (the "Final Meeting"), which the Government described as the "wrap-up" meeting for the Omagine Development Agreement. The Government also informed the Company's attorneys that it planned to conduct internal meetings (the "Government Internal Meetings") among the relevant Ministries (Tourism, Legal Affairs and Finance) in preparation for the Final Meeting and to review the Schedule of Changes with a view toward expediting the review process required at the Final Meeting. As of the date hereof, the Government has postponed the Final Meeting and the Government Internal Meetings have not yet been finalized or concluded.
On March 30, 2009 the Company received a letter from MOT stating in relevant part that "... The inclusion of your comments and additions directly into the SDA very much impedes the sorting out of the points ..." Although such inclusion was done in a "redline
document" at the specific request of the MOT, the letter went on to request: (i) "including the commercial terms with respect to the Landmark as a separate Annexure to the SDA", and (ii) including a separate document with "... any comments or additions on the SDA". Complying with this request did not change anything in our proposed February 2009 Draft DA but required (i) moving large amounts of the document into an annex which is then incorporated into the DA, and (ii) performing a clause-by-clause analysis of the DA showing those clauses where the SDA language and our proposed language differ and the reason for such difference. This was an enormous task which was completed and delivered to the MOT on April 30, 2009. While management believed this new annex ("Annex A") and the clause- by-clause analysis (the "Omagine Comments") were redundant and unnecessary, they are in fact startlingly clear and make all our proposed changes to the SDA simple to review and easy to understand. Moreover they positively illuminate how our proposed changes to the SDA will work to the Government's and our mutual benefit. Notwithstanding the foregoing described delays and postponements, management believes that the Government's bureaucratic process has now run its course, and management is unwavering in its belief that the Company's persistent insistence upon the clarity of the language of the development agreement will be of enormous financial value to all parties once the actual development of the Omagine Project is underway. As of the date hereof the Government has re-started the Government Internal Meetings regarding Omagine and we expect very few, if any, controversial items to emerge. In view of the previously encountered delays, management is reluctant to make predictions, but we are of the opinion that the Company's patient approach to this process will yield positive results and that a development agreement will be signed by the Project Company and the Government within the next 60 days.
Although the Company expects some inconsequential re-drafting of the February 2009 Draft Agreement to be required, management is highly confident that the Government Internal Meetings will result in a draft development agreement acceptable to all parties.
Regards,
AGORACOM
