Financial RisksDelays could result in a higher expense than estimated and, per the purchase agreement, potentially lead to XOM asking for the assets back without compensation.
Operational UncertaintyThere continue to be timing risks as XOM can recoup the assets in Jan-26 if SYU is not producing and the PIK loan not repaid.
Regulatory ChallengesSOC is attempting to restart oil production off the coast of Santa Barbara, California that is unlikely to gain the necessary regulatory approvals to move forward.