whl clarifies tap option

Here's the answer we need to clarify TAP option.
Pity announcement didn't explain this, but at least we have it now.
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Tap Oil are due to pay a Maximum of $2.95m as the Tap Oil Option Fee;

· This is a firm commitment from Tap Oil and paid via the JV to the seismic contractor;

· The final cost is subject to being 20% in US$ of the La Bella Seismic survey to a maximum survey cost of US$13.5m;

· Current estimates are approximately US$12.5m subject to weather and other issues;

· In addition Tap Oil have a deferred settlement with the seismic contractor extending their payment terms subject, therefore

· WHL will pay 5% of the Seismic costs for its 30% equity stake (Hence substantially cover) subject to the agreed cost cap.



We have a BRR Media interview up on the Company’s web page to explain this further.



The Tap Oil option goes further and extends an opportunity post the 3D seismic to increase their equity stake in return for a promote over drilling costs.

Additionally if Tap Oil for whatever reason does not want to participate past the 3D seismic they can withdraw from the JV.

This is the basis of the optionality extended to Tap Oil.

Regardless of that outcome they are still liable for their portion of the seismic cost.

Happy to talk over the phone if you wish.

Regards,
David Rowbottam
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