A "Right of First Negotiation” obligates one party to negotiate a matter with the second party (in this case BBEP) before negotiating with any third parties.” Right of first refusal” is a contractual right that gives its holder (BBEP) the option to enter a business transaction with the owner of something, (in this case BEC’s reserves in Orcutt Field in Santa Barbara County and the West Pico Field in Los Angeles County in California) according to specified terms, before the owner is entitled to enter into that transaction with a third party. I have asked Oppenheimer (since they’re a market maker in this stock) for their analyst’s opinion on the pros and cons of this matter and will pass it on if I get a reply.
nosweat thanks for the feedback on right of first negotiation. I had never encountered that contract terminology before in my E&P M&A work.
We used to use right of first refusal all of time in our deals. I am not familiar with your translation but we may be saying the same thing. On right of first refusal we used it as holder of the first refusal right had the opportunity to match any other offer but did not have to exceed it; eg the Wyoming properties they are buying, whomever the partner to Cabot is can match the bbep offer and take the properties in place of BBEP
I am looking forward to your feedback from the analyst