Ann: Successful Neon-2 Control Well, page-17

Thanks Ya,

I know a few of us have speculated on this over the year, but in terms of the concept design, I think we need a broader strategy overview from the KAR team. What are their plans post Neon?

Ie. what are they doing with Clorita? Have we shot 3D seismic over it yet?
Also with Neon, there are discoveries surrounding it that I believe are current vacant fields. We have the Piracuca discovery north east from Neon, could that be a potential acquisition and plug in development to whatever FPSO we have for Neon? There is also Bilby which we discovered back in 2013 south of Neon but was relinquished in 2018 as part of the declaration of commerciality process when clearly Neon and Goia were prioritised, but going back to the Hoskings focus on the "strong of pearls" strategy, there seem to be a fair few marginal fields in that area, that make sense to be owned by the same operator, and provide significant tie backs to the same FPSO. This would also give KAR a larger and longer development focus, which plots out more than just the short term focus, but plots it out to the more medium term reviews too.
Ie. do they acquire the FPSO, for the Neon field (probably bigger than Neon), then look to tie back in Goia, Piracuca, Bilby and potentially Neon West (should there be a successful well drilled there). They had also mapped up a bigger target called Platypus way back in the day which was south of Neon but north of Bilby.

I'd love to hear an overall strategic direction of their plan for these northern blocks. The more southern ones, will depend upon Clorita but with the Bauna intervention and Patola development now completed, then rightly their focus now needs to move to the Northern blocks and give investors and clearer view of their plans.

In the Annual report, they claimed Neon could produce at 30k-50k which would probably indicate it should have its own FPSO, which would then bring the other fields into play to offset for natural field decline, but potentially result in increasing production rates also.