Ann: Webinar for Block 9 Update, page-147

Hi All,

For those interested, just posting my key takeaways from the Webinar.

Slide 1 Points
1. Surprised the JV has decided to Farmout the Amistad Units (assuming all 3), as this has come across from previous presentations & discussions as a high impact, lowish development risk project. Potentially, freeing up cash and time to continue the focus on the deeper plays?

2. Hoping (very much!) that the Amistad Unit 1B Workover could be an extensive reperforation and acid stimulation treatment of the full ~615mTVD net pay section and not just the ~20% section that was initially flow tested. Would think that the potential of a significantly higher flow rate than the original 1900bopd peak flow rate would build a lot of confidence in the units development potential - even if production from it would have to be choked back due to initial trucking logistics etc.

3. Great to hear that the new production wells are intended to be produced over the entire net pay section - as the Cubans do!!

4. Testing of commercial arrangements - very good idea. And "getting paid for the oil offshore" - I'm interpreting this as the refiner will pay the JV's respective parties directly for their respective percentages of oil delivered. If this is the case then IMO a major risk reduction on MAY being paid, one of the key risks AP mentioned years ago, and that the timing of payments would hopefully be 30 to 60 days and not 90 to 180 days that I had noted that Cupet would pay in (I unfortunately didn't have this timeframe referenced!! - see line item 39 in Slide 2).

Slide 2
For those interested just my current summary of MAY's recent and near term Work Programme.

On the drilling and testing issues encountered in Alameda-3's Marti & Alameda reservoirs, unfortunately in the initial phases of exploration in an area offset from previously established drilling and development success these types of problems, from my own oil & gas explorationist experience, are the norm rather than the exception, and this is particularly the case when dealing with generally higher temperatures & pressures. They will work the Alameda-3 data hard and develop mitigation strategies for the future. Hopefully, we can get to see an Alameda-3 sidetrack with the new recipe put into practice.

GLTAH
Cheers
VOGC