Ann: Manora Update - US$27 Million Default of Northern Gulf, page-56

Here are some noticeable info. from my research notes:

Borrowing Base Debt Facility with BNP Paribas and Siam Commercial Bank
Decision to debt fund Manora Oil Development to reduce potential dilution of shareholders and to
therefore enhance returns to equity holders. Borrowing Base Debt Facility fully drawn to US$78.9 million, with cash of A$28.1 million. Proceeds from Manora crude sales are being received 30 days from lifting.

During 2015, forecast net cash flow from Manora of US$40 million to US$60 million with oil prices between US$55-$65/bbl (after forecast Thai taxes, royalties and operating costs but before repayment of debt). TAP shares 30% of this revenue.

Moderate hedging program executed for April to December 2015 for 495,000bbls at an average swap price of US$62.75/bbl representing 40% of forecast 1P Manora production for the period. Hedging enhances the borrowing base under the debt facility and supports Tap’s cash flows

Strategic Review Commenced
Maximise shareholder value from the existing portfolio as the Company believes the value of the assets is materially greater than the value implied by the market capitalisation of the company. Divestment options considered for all assets, including the Manora Oil Development and Australian asset portfolio, with utilisation of Tap’s significant franking account balance of A$71.8 million for the benefit of Australian resident shareholders a key consideration

Improvements to Liquidity
(1) Deferral of expenditure; asset sales process commenced; corporate and exploration cost savings
(2) Manora development wells – two no longer required and two deferred
(3) Withdrawal from Tap’s 30% interest in G3/48 exploration in Thailand
(4) Discussions with the Operator on timing of the G1/48 exploration well

About Mr Yenbamroong and his private companies
In October 2010 Mr Chatchai Yenbamroong, a Thai entrepreneur, sold a 30% interest in the Manora oil field to Tap, and retained a 10% interest. Staged Manora acquisition payments have been agreed as part of that acquisition based on the achievement of project milestones – see below for further detail Mr Yenbamroong’s 10% interest in the G1/48 Concession and the Manora Oil Development is held through his controlled entities.

Northern Gulf Petroleum Pte Ltd (NGP), a Singapore incorporated company that is a subsidiary of Northern Gulf Petroleum Holdings (NGPH), a Bermudan company Mr Yenbamroong and his controlled entities increased their voting power in Tap from approximately 6% to 19.98% in January 2015 through on market purchases at prices of between 35 to 40cps.

Mr Yenbamroong himself holds approximately 14.46% of the 19.98% interest in Tap‘s shares directly. He has previously been involved in ASX listed companies, such as Nido and AOC.

The Manora Operator has recently served NGP with a default notice under the Manora JOA asserting the failure of NGP to pay its share of JOA expenditure amounting to approximately US$27 million