Ann: Philippines Acquisition and Update, page-4

Here is my estimate of a "fast track absolute-stellar-best-case timeline" for SGC in the Philippines, assuming they have all the necessaries miraculously sorted out by end of August (such as funding, approvals and permits for drilling and producing offshore Northwest Palawan):

1. Procure tangibles (casing and wellheads, not just pipes), complete the approved G&G work, finalise drilling and completion program + simultaneously tender for rig and services, FPSO services for testing well, site survey = 5 months; and

2. Tow of rig to location, install 3rd party services on the rig = 1 month,

Total Fast Track time = 6 months.

This is a very aggressive timeline and very few can achieve this. However, let us give SGC the benefit of being the best amongst the best, then they have a left field chance of doing their EWT by March 2023 (first cargo in April 2023 to pay for the advances?). Less than a year from expiration of SC6B in Feb 2024.

Back down to earth... Fast tracking is not something everyone can do - you would need a suitable team with good expertise to work on this full time for 5 months before it actually goes to contract. Team would have to consist of about 5 or 6 people working continuously together. So really they should have been working together already since the beginning of 2022 to make a Dec 2022 spud. And do recall that when they did the deal with Edouard Etienvre last December to take over Cadlao from Manta, the claim was an EWT by June 30..what happened to that? Reality is what happened. Just like the photos of pipes...this was clearly a pipe dream.

Here is another left field thought.....is the SC6B consortium now preparing for the strategy of relinquishment and re-nominate with the DOE? Is this the reason why Cadlao is no longer first on the list of EWTs? Nandino SC 54A has many more years in its tank left hence why it is now top dog. I can see an announcement about this before the end of the year. It took the SC14 consortium 18 months to get their relinquishment approved (minus Galoc and West Linapacan). If this is the strategy, then they need to start now, if not very soon.

My ad nauseum statement....SGC bit off more than they can chew.