Significant Underestimating of Soloo Prospect's Sale Value?, page-4

Hi, VOGC,

For the CNE/WPL sale I used the last 2C resource announced by CNE (560mmbo) and also provided the 2P resource announce by WPL (231mmbo). Using the last announced 2C resource for Sangomar for the CNE/WPL sale enabled me to provide a comparison between the COP/WPL transaction and the CNE/WPL transaction.

The COP/WPL transaction had no 2P reserves at the time and thus the sale was done on the FAR (RISK) announced 2C resource (561mmbo) and WPL stated so at the time when quoting that they paid a price of US $2.20/bbl. (561mmbo x 35% = 196mmbo (2C) x $2.20 = US $430M sale price) That was the only time any of the JV partners apart from FAR quoted FAR's RISK resource estimates. You could say WPL chose to use the RISK estimate because it enabled WPL to state a lower cost per barrel for the sale. The COP/WPL sale was conducted on a 35% working interest and over 3yrs prior to Petrosen exercising their back in entitlement.

So what I am saying in a round about way is that the two sales transactions if broken down to a 2C resource valuation were transacted at between US $1.94/bbl and US $2.20/bbl. The COP/WPL transaction was higher but we have no way of knowing how much WPL paid for blue sky with FAN and the other prospects at the time. Songomar had 5 wells drilled up to the purchase date plus FAN and WPL has participated in a further 3 wells at Sangomar (SNE5, SNE6, VR1) and Fan South.