Ann: PetroChina Aligns with TMK Energy, page-27

Been thinking how they will get petrochina will invest in the company/project. Makes more sense for them to come in at project level as any investment into the company would need to reviewed by firb. After the completion of this drilling and the well TMK will own 66% & TPD will own 33%. I'm thinking TMK would mostly like want to sell down their stake in the project to 51% , no less to remain operator & in control. So in my hypothetical, what is 15% of the project?? If the next couple of holes are successful & the pilot well brings gas to the surface you would think the project would be at least worth $100m. $15m is peanuts for petrochina & gets them a seat at the table. It funds TMK through to the next stage of development and will reduce dilution significantly.

From petrochina point of view , 15% is a starting point (and probably not worth their time) but the way JV plays out , they might have to only buy 66% of the project (TMK portion) to control it & leave TPD out in the cold and force them to continue to plug money into the project or force them to dilute down. Nonetheless exciting times!!!