2013 exploration update & change of operator

Great for BKP!

• Statoil with a 75 Bil market cap to become the operator
• JV operator with nil risk regarding cash flow
• Statoil to handle expenditure for Phase 1, 2 and 3 US$160mil
• Statoil to spend $50mil on phase 1 exploration 2013/2014
• We retain our 25% working interest and 75% undivided working interest in the surrounding 75km2
• BKP to include exploration of the highly prospective conventional areas of the Hagen Member within EP-127 on the joint operating agreement, initial oversight? Ahh hindsight...

Good for PFC?

• Retain their 10mil in cash, no need to raise another 5mil
• Loose another 15% working interest to Statoil
• Free to explore other ventures.

Great for Statoil!

• Achieve another 15% of PFC’s working interest
• Now in a position to make all decisions as operator to ramp up exploration to hearts content

BKP have stated due diligence on proposed amendments by PFC including the submission and sign off of BKP’s own proposed amendments requested by PFC (Hagen member exploration) to be completed by potentially 1 week.

With 2013/2014 exploration to follow.

The share price: On current news and with exploration to begin I would expect the SP to again make its way back above the 0.01c mark (a min 100% gain from here), with further gains to be made on results/future spud dates/and other such work around existing and or new wells from 2013 onwards.

Risk from here? BKP now coming off the bottom end of a 52 week low (0.003) with a 52 week high of (0.016) BKP is currently trading at the bottom end of the risk curve.


Good luck to all (new) and existing holders!