Ann: Philippines Update - Drilling Workshop, page-15

Here is my fundamental analysis (as opposed to psychoanalysis) of the SGC checklist by end of June (6 weeks away):
1. Full funding in place in cash in account (at least for Phase 1, probably around 25 million dollars, should be more I think),
2. The "new" DOE Secretary signs the approval of the FIA (his or her first order of business no doubt - priority to SGC naturally),
3. In parallel, SGC has gone to Palawan and met with the PCSD and has shown them their Environmental Impact Assessment report (or perhaps Philodrill did this for them to save time, perhaps they have a template ready and all they needed to do was fill in the registered address of SGC),
4. The "new" DENR (Environment) Secretary issues the ECC for the Cadlao drilling campaign (as in 2 - priority to SGC of course),
5. Site Survey organised and sorted as well (all reports done and prepared and ready to submit to the different agencies), also fully funded (around 2 million bucks?),
6. According to SGC, the Nandino POD (SC 54A) and drilling campaign will also be approved by then (and full funding for this is also in place). I think Nandino is a deepwater prospect, so potentially more expensive and risky than Cadlao. But no matter, everyone at the DOE and DENR and PCSD will in 6 weeks time sign off on everything because SGC found so much money from a willing investment professional or bank (they certainly cannot raise it via a CR),
7. Drilling rig contract negotiated and signed off (JU only? Or do they need something more like a SS?), no matter SGC will get what is needed by then,
8. All other equipment (e.g. assuming a MOPU to an FSO POD) already secured and design and engineering already sorted (facilities, FSO design, etc.),
9. All essential items such as wellheads, pipes, tubulars, etcetera already delivered to the nearest depot for ease of transfer to the site (i.e. Batangas facility).
And the best reason why all the above 9 things will occur in 6 weeks time.....is because SGC held a drilling symposium in Singapore hosted by no other than an ex Nido employee who helped them succeed in the Philippines. Hence why PNOC is so keen to farm out of SC 58. Very impressive stuff and should convince anyone that this share price is not heading to 0.7 cents.

My estimate for full field development of Cadlao (3 to 4 wells) plus Nandino (2 wells) is about 130 million dollars. Or nearly ten times the market cap of SGC. But I am confident that they will get this sorted by end of June 2022.