Sell depth has vanished., page-17

For the last 3 years we have reported that we have an agreement with Freeport to drill two firm wells on the Mazagan permit. One firm well remains to be drilled before September 2016. If we take action to ensure this well is drilled it will probably cost Freeport over $100m. This would be the best option because we are free carried and there is always a chance of a major oil discovery.

If we are proposing to back away from this agreement, by mutual consent, we stand to loose a great opportunity which will be almost impossible to reinstate in the current low oil price enviroment.

So we go from a company with a potentially company making free carried well to a company with leases looking for farminees. Depending upon the oil price timing , it could take years to get action on our leases.

We really need to consider very carefully the way forward and if we propose to be paid out, we need to consider what will happen to PVD in the following years. The payment needs to be substantial. Right now you could buy out PVD for less than $20m.

I have no knowledge on how this is progressing. Just thinking aloud. Anything could happen.

Cheers all,