Ann: AGM Presentation, page-23

The elephant in the room is the question mark at the end of the commencement date for the 3D. This suggests to me that the 3D is not firm, rather it is contingent on a farmout. My interpretation of the situation from here is as follows:

• Ministry will give them a special 12 month extension if they can attract a farmin partner to pay for the 3D. If they can't get a partner, they will drop the block.
• If they can attract a partner, the only option they have is to have the 3D shot by a multi-client company who already have an Environmental permit in place. (Searcher are acquiring in the area, so probably tacking onto the end of their program).

The concern is that 12 months is a very short time to acquire, process, interpret and make a drill-drop decision. Indeed, the 12 months is not 12, rather more like 9 or 10 as there are notification periods. Potentially the 3D area may be reduced...

Hopefully some answers out of the AGM... Fingers crossed for you all.