Ann: Corporate Presentation, page-36

Agree that it is unlikely that Collins buying is doing very much to the sp, but it sure has more impact than some of the fantasies some have.

As for Gallagher, he wants to go ahead with it, currently it’s an asset he’s probably getting no credit for. There’s a question of how much risk he wants to carry through delivery vs how much he can extract up front from selldown. He’s got to get FID ready and guarantee to proceed in order to get a decent price for a farm down.

With STO’s limited offshore project experience and still having major projects in progress it makes sense to farm down enough to fund his remaining capex, and perhaps also to get someone else to operate the project, if those with the best offers also have better FPSO experience. I really don’t know what expertise they have in house, but imo JustCroozin made valid points about their limited corporate experience with such projects.

Imo if they can get a suitable FPSO for redeployment then the ducks are now lined up, clearly last time they aimed for FID the ducks were all over the place.

Hopefully this time next year our sp is in the thirties.

EL