Ann: Manaia-2/2A Progress Report No 11 , page-27

Planning on going to AGM.

Definitely what to get better insight into the assets.

WRT to PNG, HZN believes "no issues are outstanding that will prevent issue of PDL for Stanley Field".

The part that I do have a little concern over is the negotiation with the PPL259 participants regarding unitizing Stanley field.

This is from Eaglewood Energy (65% of PPL259):
Eaglewood Energy notes a “DPE instruction to conduct unitization by voluntary agreement prior to PDL award. PDL will not be granted until unitization is resolved.”

Eaglewood goes on the say "Gaffney Cline & Associates resource work indicates approximately 10% of Stanley field resides in PPL 259 and that Mitsuibushi paid Talisman $40M for 10% of PRL4"

Given HZN has a 15% interest in PRL4 & OG has 10%, that means that 25% of that 10% is with us already. Which leaves 75% with the others or 7.5% of the prospect or $30M

Maybe Eaglewood and Mega Fortune International (10%) wants to sell that 7.5% and for us to keep the current ratio that would mean HZN coughs up $18M and Osaka Gas $12M, to buy out the others from PRL4?

Otherwise unitizing on that basis would be 7.5% of net production - but what about the costs side - how would they agree on that.

IMO - that's where the PDL is being held up.