Ann: Letter to Shareholders, page-19

March 2015 Tap advise us about Northern Gulf Petroleum holding off US 27M from Mubadaba Petroleum the operator of Manora oil field under the joint operating agreement.

In 2015 Tap claimed NGP had paid us $1.03M of proceeds of sales and were holding off US6.69M at 20/8/15 (capped at US10M).

NGP were claiming US14.6M from us as payment for 2P reserves at 31/12/14 (approx 24.8Mmbbo).
We claimed we only owed them USD 1.31M on a much lower reserve.

In Jan 16 an announcement was made that Tap paid Mubadala capital cost overruns of US5M of a disputed US9.1M. I may be wrong but this was a left field dispute to me as I could not see it mentioned in prior announcements.

Nothing further in 16 is mentioned of NGP's US 27M dispute with Mubadala and nothing has been mentioned of it since. Does anyone know the status of this?

In Nov 16 Tap claims on NGP and NGP's claim on Tap is settled with Tap owing NPG US2M (US662K in shares). The final USD 500K is owing to NGP by March 18. It also looks like NGP were promised not to be diluted by any raising. Tap worded it something like "NGP have committed to use their best endeavours to take up their pro rata entitlement" for any raising. I think this is more a promise that they can not be diluted which could be used to help Tap directors out of their current predicament.

Was Tap, NGP or both wrong on the past claims on each other? Hard to say, but judging by their settlement, it was a bit of both.

I don't blame NGP or Risco wanting to use the harvest strategy. Please correct me if Im wrong, but Manora should be able to provide more than the share price in cash each year for the next four years.

Tap is undervalued and this recent board spill project by major shareholders is creating a value opportunity.

All I want to see is either the current directors trying to work with Risco and NGP to see if they can remove the spill effort, but taking on the harvest strategy and running a tight ship. Or I want to see some more details from Risco on their proposition including how costs will be kept down.

The share price may not go anywhere while this is happening, but Tap its making big $$$ every day.