Ann: Phoenix South-3 Drilling Update, page-53

It has been a game of musical chairs since 2009. Here's the timeline.

- CVN picked up WA-435-P in 2009 based on the 2 BP wells.

- Finder were awarded 436, 437 & 438P. Both did a deal to share 50-50 equity in the 4 permits.

- By March 2011 they finished a 3Dseis survey over Phoenix.

- In 2012, both farmed out 20% each to Apache & then dropped another 10% each to bring on JXNEx onboard as JV partners.

- Apache sold these permits alongwith the rest of its portfolio to Brkf-Mqr JV for USD 2.1bil - 0.225mil = USD 1.9bil (2P-221 mmboe), and another portfolio comprising of Wheatstone-JB-Balnaves to Woodside.

- In 2016 Finder gave its 20% for a royalty deal with Apache & JXN sold its 20% to Apache.

- Today we have QE-CVN as 80-20 equity holders.

QE could bring in a 3rd player for the appraisals if it wanted to save cash burn, but that would b a bit early & cheap at this point in time in my view.

--------

Similar chain of events happened in the Exmouth sub-basin back in 1997, when WPL picked up WA-271P & discovered Enfield, Laverda & Vincent oilfields before selling 40% in 2004 to Mitsui for USD434mil.

They didn't have much competition during the permit award b'coz the Area had a well with biodegraded oil (16 API) at relatively shallow depths to develop.

Fast fwd to 2018, there's 4 active oilfields with FPSO's & 1 that's offline now (Stybarrow 60 mmbbls) producing 15-21 API crude oil via dual-tri laterals wells & water injector combinations.

So yes CVN's find of 49.6 API should b 'special' with a 80m net oilpay zone with 20% porosity & 82% oil saturation, something not many analysts would have heard off in the west (read the sarcasm bit from the C/Suisse fella mayb he should look up the costs/revenue etc for the 5 recent oil dev in Oz with 8-10+ year fieldlife).

For now though the JV needs to appraise D#1 downdip to establish a cut-off for the water leg in the Caley. for future water injectors in my view. Swingby next week.