Ann: Alaska Winter Field Season Update, page-8

From Morgan Stanley @rollacoaster

Oil Search has announced that its Mitquq-1 well has encountered hydrocarbons. This is the first well from two exploration wells that are being drilled in Alaska. Mitquq is targeting a structure under 100mmbbl and is within tie-in distance of the main Pikka development. The discovery still needs to be flow tested and size attained so it's too early to know commerciality but it is encouraging. A higher risk well further to the south called Stirrup is also about to commence that is targeting a materially larger structure. If this is successful it could underpin a new central processing facility but is also a higher risk well. We remain Overweight and Oil Search remains number 1 in our large cap sector order of preference. We think sentiment will improve on Alaska in 2020.