General Thoughts, page-6532

The results of the forthcoming drilling program by Chevron in PEL 90 to the south of PEL 87 will be of interest to PCL shareholders, as success in PEL 90 would most likely heighten industry and investor interest in any drilling taking place in the future in the offshore Orange Basin, including PEL 87.

As an example of this international investment interest, the following comment on the upcoming Chevron drilling may be of interest.

Citi maintains buy on Chevron stock, sees upside in Namibia

https://in.investing.com/news/analyst-ratings/citi-maintains-buy-on-chevron-stock-sees-upside-in-namibia-drilling-93CH-4545610

Here's some excerpts:

"The firm emphasized the unique potential of Chevron's upcomingexploration activities in Namibia. Unlike typical operations of major oilcompanies, Chevron's drilling in Namibia presents significant operationalleverage due to its substantial 80% equity stake in the region."

"Citi highlighted the potential financial impact of a high-end success inNamibia, estimating a net present value (NPV) increase of $10 to $20 billion.This would translate to a 3 to 6 percent rise in equity for Chevron."

"The firm also noted the strategic importance of the Namibia drillingresults. A positive outcome could provide a valuable counterbalance to anyunfavorable results from Chevron's partnership with Hess Corporation(NYSE:HES). The anticipation around Chevron's first well result in Namibia isbuilding, with expectations set for an announcement by early February."

"Investors and market watchers are now looking forward to the upcomingwell results, which could significantly influence Chevron's market position andfinancial standing. The developments in Namibia are set to be a focal point forChevron's performance in the near term."

“Chevron's exploration activities in Namibia, as highlighted byCiti, align well with the company's strong financial position and marketstanding. According to InvestingPro data, Chevron boasts a substantial marketcapitalization of $288.18 billion, underlining its significant presence in theoil and gas sector. This financial strength provides a solid foundation forhigh-stakes exploration projects like the one in Namibia.”