VCT
24/12/2014 13:29
GENERAL
PRICE SENSITIVE
REL: 1329 HRS Vector Limited
GENERAL: VCT: Kapuni Field Gas Redetermination Update
On 8 December 2014, Vector advised that Vector Gas Contracts Limited
("Vector") had been notified by Todd Petroleum Mining Company Limited
("Todd") and Shell (Petroleum Mining) Company Limited ("Kapuni Mining
Companies" or "KMCs") that under the Kapuni Gas Contract ("KGC") they require
the parties to meet to redetermine the Original Recoverable Gas Reserves
("ORGR").
Vector has today advised the KMCs that it disputes the validity of the
redetermination notice as the KMCs have not provided all of the reserves
information required to be provided to Vector under the KGC. This reserves
information is required to enable Vector to properly participate in the
redetermination process. In its 8 December 2014 announcement, Vector also
advised that it exhausted its share of the current ORGR (1010 PJ) in July
2013, and has been continuing to take Kapuni gas on the basis of a 2011
letter agreement with Todd and Shell that there are sufficient reserves to
supply Vector a further 36 PJ over 5 years.
For clarification purposes Vector advises that the 2011 letter agreement
states that it is expected that there are sufficient reserves to supply
Vector a further 36 PJ over 5 years. From Vector's perspective this
clarification does not affect Vector's entitlement to gas under the KGC.
ENDS
End CA:00259410 For:VCT Type:GENERAL Time:2014-12-24 13:29:17
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