I'm wondering if someone here can confirm my understanding on...

I'm wondering if someone here can confirm my understanding on the commercial arrangements between TEG and Pilot.

I've looked at TEG in the past and considered that the abandonment liability at cliff head is too much of a concern to make it good value.

however, now as I read it, upon nopta declaring cliff head a greenhouse gas storage formation TEG has the option to completely withdraw from the permit leaving any liability behind. Essentially if they don't see value in the ccs project at the time they can walk away and leave it to pilot to execute and assume any abandonment liability. This sounds attractive to me.

do we know how much flexibility TEG will have on that option? For example, if nopta declared next week could TEG wait until the oil production becomes economic and then exercise the option to walk away. Or do you think they'd have to make a call straight away, including handing 60% of the production over to pilot?

They have potentially secured a very low risk deal here, which if along with some free carried exploration makes for a good proposition in my mind.