Ann: Thailand Drilling Update, page-7

EL.
The S and P agreement provided for $US 35m "now",being $US35m( ostensibly for many that means for the first 10%,but that isn't a correct interpretation) and"up to$32US" to be payable(ostensibly .... for the 2nd 10%......),in annual payments but with a limitation on the amount of such payments per Loyzs future revenue (from all its activities).
Its almost certainly incorrect to say that we got 35 for the 1st 10% and up to 32 (max) for the second-we got a certain price for the 2 tranches and you cant disentangle them .The" clawback" isn't in these 35 and 32 figures,though.
Its the statement by LOYZ to the Singapore S.E. that they expect(ed) the field to produce at 5000 bopd in,or by,December 2014. that contains almost certain proof that the S and P agreement has the future bopd production etched into it and that the total consideration ( 35 plus 32)could be varied if production doesn't meet expectations.
The good news is that both parties( CVN and LOYZ) should be happy by December 31 that their joint expectations on future production haven't already started to crash or be at least be singed already.
The other good news is that since July last year there does not seem to have been any significant watering out of the Vwells apropro the throttling back of the new V wells since mid 2013.Long may this continue as we still hold 20% and need to have its apparent value maintained.