Ann: Seychelles Update , page-11

HI DOBS
afren plc may be similar.
Commercial terms
The PSC for Areas A and B has an effective date of November 2008. The PSC has an initial exploration period of two years, followed by two additional exploration periods (the first lasting two years and the second lasting three years) before entering an exploitation phase lasting up to 25 years. The Government of Seychelles has no back-in rights into successful exploration wells and contractors are allowed to recover 100 per cent. of their costs from 100 per cent. of the production. Oil and gas royalty rates are both flat at 5 per cent.; revenues incur an Additional Petroleum Profit Tax that ranges from 30 per cent. to 45 per cent. depending on previous production revenues.

During the first exploration period, the PSC partners are obligated to obtain 2,000km of 2D seismic and 150 square km of 3D seismic. The partners acquired 3,637km of 2D seismic data in 2007 and a further 1,271km was acquired in 2009. During the second exploration period, the PSC partners are obligated to acquire 1,500km of 2D seismic and to drill one exploration well. During the third exploration period, the partners of the farm-in are obligated to acquire 1,000km of 2D seismic and to drill two further exploration wells.

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