POO, page-5

Sell stack may be a reflection that market believes that the upside potential is all late 2017 and beyond, and capital may be better employed elsewhere. Indeed, there may be some downside risks if Tanz farmdown does not complete for whatever reason or further schedule slippages are experienced in GoM or Alaska. Unless there is reasonable expectation of some positive price catalysts prior to Tanz drilling and SM71 development drilling later this year - the sell stack may outweigh the buy stack for some time.

It also appears that 'nearology' in Alaska, be it from Armstrong/Repsol currently or 88e later, may not 'flow through' to OEL as long as GB maintains its fiscally induced reluctance to drill.