Seems that a reminder of history may be useful here. The PEP11...

Seems that a reminder of history may be useful here.

The PEP11 title was renewed in August 2012. Its first year's work commitment was 2D seismic reprocessing.

The second year's (August 2013 - August 2014) work commitment was 200 line km of 2D seismic acquisition and geotechnical studies.

Suspension of the year's work commitment and corresponding Extension of the permit term ("S&E") was applied for during the initial Yr 2 period. This was granted by NOPTA in 2015, such that the 2D seismic was then due by August 2015.

Another application for S&E was granted in 2016, such that the 2D seismic was then due by August 2016.

A further application for S&E was applied for during 2016. The title tenure was not secure as of August 2016 in that the application for S&E had not been granted as of the date that the year's work commitment was to have been performed.

It was only during 2017 that an Environment Plan was submitted to NOPSEMA for approval to undertake the Yr 2 works. Acceptance of this has now been achieved such that the Year 2 work commitment, originally required to be undertaken between August 2013 and August 2014, can be performed.

Furthermore, this commitment to achieving title compliance has been reflected in NOPTA's grant of an extension to the current year's work commitment (now February 2019), and extension of the title through to February 2021. Keen media readers may note NSW government's reservations to this extension through historic compliance concerns. Had this extension not been granted, a real possibility would have been that the PEP11 title would have been revoked through historical non-compliance with the permit work commitments.

This demonstrates that the commitment of the support from the present directors and management of MEC, as rogerd helpfully provided a reminder thereof, has in fact preserved the Company's assets and provided the best opportunity for value creation.