Ann: Farmin to Cadlao Oil Development, page-24

Further reading of the announcement of the farmin....it looks like the same FIA that Manta did with the Filipinos (note: free carry up to the declaration of commerciality). Which in my opinion is the worst possible outcome for the Filipinos because it exposes them to the one well declaration and hence potential future liabilities (i.e. for wells 2, 3 and 4 and East Cadlao). In other words, this was a deal done out of desperation. The Filipinos will have to pay their way after well 1 because if it were me I would declare commerciality then and there and so put the Filipinos on notice that they have to contribute or be found in default. A rushed deal no doubt about it and one mirrored after the Manta template.

Second, I note that the announcement seems more vague about when the EWT will occur. It appears that it has now become one of "later in the year" as opposed to before the end of June/first half 2022.

What is not clear to me is the various critical deliverables (no mention of anything regarding spudding date for example). However, first things first. They need the DOE to get them approved as Operator and that requires quite a bit of cash in bank. I wonder if they have an EIA in place yet?

Lastly, I am perplexed why SGC hired the same staff that screwed up NDO in the first place. This for me is the biggest joke of all.