Kellbys, the agreement with RL Energy initially provides for...

Kellbys,
the agreement with RL Energy initially provides for them to earn 10% only in PEP11.

They have an option to take that to a maximum 60% in PEP11.
Should that be achieved, then Advent Energy will hold 34% prior to drilling. Pending any future agreement, Advent Energy should have the opportunity and/or choice to maintain that interest through drilling by contributing its working interest to that drilling program. That is a very material interest in what would be an exciting drilling opportunity.

The obvious benefit to all at that point in time would be (assuming the 3D is acquired) that drilling is undertaken using the best data possible, and not on a relatively sparse grid of poorer quality 2D data. Should exploration success be achieved, then the 3D data already acquired is available to support expedited commercial development.

Conversely, whilst drilling on the existing 2D is possible, it is a non-ideal scenario and would result in a significantly lower probability of success. Acquisition of 3D data after successful exploration drilling on 2D data would be expected to facilitate development anyway. So in future, it is possible we could arrive at the same destination but via a much riskier pathway. Attracting the funds for drilling now, however (and if even possible), would be based on higher risk and poorer quality data.

The 3D option is a much more prudent, risk-considerate pathway toward a "sustainable" future for PEP11.

The current team has secured title and achieved regulatory approval to enable compliance with the immediate work commitments of PEP11.

We look forward to your support.