Integrity Experience Analysis Advice Results

Transcription

1 Top_Pre_miocene Top_Basement P9 Top_Basement P9 Figure 22 Prospect

2 9. APPENDIX WEST KOMOMBO CONCESSION AGREEMENT AND PSC TERMS Contract period o Period 1 (Years 1-2): Initial exploration period: 2 years o Period 2 (Years 4-6): 1st extension exploration period: 3 years o Period 3 (Years 7-8): 2nd extension exploration period: 3 years The maximum period for exploration is eight years (the exploration period can be extended for a further 5 years subject to a payment of US$5 million) within which Pan Pacific Petroleum can declare commercial discovery on any part of Block 3. If a commercial discovery is declared, Pan Pacific Petroleum can apply for a development lease of a further 20 years. Pan Pacific Petroleum is required to relinquish a minimum of 25% of the original area at the end of each exploration phase. At the end of the last phase, only development areas will remain. Minimum work obligations & financial commitments o Period 1: Seismic acquisition, processing, reprocessing and interpretation : US$3 million o Period 2: Drill 2 wells: US$4 million o Period 3: Drill 2 wells: US$5 million Bonuses Pan Pacific Petroleum will be required to pay the following bonuses to the Egyptian Government: o Signature Bonus: US$100,000 duly paid upon execution of the Concession Agreement. o Development Bonus: US$3 million paid when the development lease is granted o Production Bonuses: At sustained production of 25,000 bopd: US$2.5 million At sustained production of 50,000 bopd: US$5.0 million o Extension bonus: US$5 million to extend the exploration period for a further five (5) years. Cost recovery Pan Pacific Petroleum can recover quarterly all costs, expenses and expenditures in respect of all the exploration, development and related operation to the extent and out of 40% of all petroleum produced. The remaining 60% shall be divided between the Egyptian Government and Pan Pacific Petroleum in the ratio of 70% and 30% respectively (for period of initial production) or 80% and 20% respectively (in case where the crude oil produced is more than 25,000 barrels per day). Pan Pacific Petroleum shall have the right to freely export the petroleum produced from the oil field No licence shall be required and the exports shall be exempt from any customs duties, taxes, levies or any other imposts in respect to the export of petroleum

3 10. APPENDIX RISC COMPANY INTRODUCTION RISC was founded in 1994 to provide advice to the oil and gas industry on the acquisition, development, management and sale of assets. Based in London and Perth, the company has to date completed many hundreds of assignments for over 300 clients in most regions of the world. Since January 2001 RISC has been the principle technical and economic advisor on transactions whose total value has exceeded US$45 billion. Our competitive edge is distinctive - it comes from our practice of: Employing structured business processes which are comprehensive, rigorous and auditable. Providing the required spectrum of skills and expertise to ensure that all technical, nontechnical and commercial factors which define risk and reward are transparently defined and evaluated. Maintaining the highest level of professional ethics and integrity. At all times respecting and upholding the confidentiality of clients' business activities and information. Alliance KPMG and RISC have formed an alliance to bring additional benefits to our clients in the oil and gas industry throughout the world. KPMG and RISC have been separately providing support to the oil and gas industry for over twenty years. They each have recognised and highly respected reputations as providers of business advisory services covering a broad spectrum of technical, financial and commercial skills relevant to the oil and gas industry. In 2001 KPMG and RISC started exploring how the outstanding depth of industry skills available from each organisation could be combined to provide seamless, integrated services to enable our clients to have even greater confidence in making operational and strategic decisions in the oil and gas business. Since 2002 KPMG and RISC have worked together successfully on several major projects and we have now formalised the relationship. It is not an exclusive alliance and both KPMG and RISC will retain their independence for many projects, however, where we see value for our clients we will seek to draw on each others skills to provide them with increased confidence in their business decisions. Further corporate information about RISC can be found on our website QUALIFICATIONS The principals of RISC have also had responsibility for the preparation of independent expert reports, reserves statements, the preparation, evaluation and implementation of oil and gas field development plans, gas and LNG contracting, joint venture negotiations and evaluation of new business opportunities during their careers with major organisations such as Shell, BP, Arco, Santos, Mobil, Petrofina and Woodside. Summary career resumes are given in Attachment

4 EXPERIENCE RISC has a policy not to name clients because of most of the work we carry out is confidential and commercially sensitive. However, because of their nature, some of the assignments are published in the public domain. Some examples of specific recent relevant experience are shown below:- Independent valuation of a major portfolio of exploration assets in East and West Africa and Australia. Independent experts s report in support of ROC Oil s Rights Issue. Scope included the discovered and exploration assets of ROC oil in Australia, West Africa (including Mauritania), China and New Zealand. Independent expert s report in support of Sterling Energy plc s financing of the Government of Mauritania s back in to the Chinguetti oil field project. Independent Geological Report covering all Strike Oil s exploration interests in Australia in support of Strike Oil s prospectus prior to a successful IPO in August Independent technical evaluation and commercial valuation of discovered reserves and exploration potential of the asset portfolio in USA, New Zealand and China in on behalf of the Board of Horizon Oil NL. Independent Expert acting for the Buyers in respect of proposed contract additions for a 2 Tcf reserves gas asset, onshore Australia. Independent technical and commercial advice on equity participation options in four major LNG projects located in Australia, Indonesia and the Middle East. Preparation of Independent Specialist reports for Deloitte Corporate Finance s Independent Expert s Report on the value of Woodside in response to Shell s Revised Merger Proposal. Independent valuation of an international company s Australian discovered and exploration assets for ATO purposes. Engaged as expert witness for a major gas contract price dispute including technical and commercial support to the development of legal argument. Independent expert and arbitrator for the valuation of a substantial asset transaction. Independent expert in support of price re-determination of a major gas contract. Validation of operator s reserves assessment for 2 undeveloped Bass Strait gas fields Coordination of the preparation of a Field Development Plan for a Bass Strait gas field Certification and due diligence for a Bank in support of project finance for a West African oil asset. Due diligence assessment of project reserves and costs in support of project finance for further development of a number of oil fields offshore West Africa. The scope of work included detailed audit of operator s mapping, well performance analysis, assessment of condition of offshore facilities, cost forecasting and audit of operator s economic model. RESOURCES Function Project Co-ordinator Geoscience Assessment Reservoir Engineering Engineering/Costs Nominated Person Tom Prudence Tom Prudence, Nick Hall, Elaine Jones Geoff Salter Simon Whitaker

5 Over 20 years experience in the petroleum industry in UK, Egypt, South East Asia and Australia. Simon has a strong all round petroleum engineering background including reservoir & production engineering, well evaluation and varied operational experience. Subsequent career development has involved an MBA, asset management, field development planning and implementation and commercial roles. CONSULTING PRACTICE Joined RISC in 1998 after a career in the upstream petroleum sector since With RISC has co-ordinated and/or participated in a variety of assignments, predominantly involving technical and commercial asset evaluation. Some examples of recent assignments and achievements are Management of valuation team for complex international asset with cross border gas sales including provision of advice to potential finance provider. Leader of Due Diligence team for international LNG project. Co-ordination of multidisciplinary group conducting commercialisation and pre-development study of an offshore gas field and new gas market. Detailed planning of three well appraisal campaign in remote SE Asian location involving input to drilling, completion, stimulation and Simon Whitaker Partner MBA International Business and Export Management, City University Business School, 1991 MSc Petroleum Engineering, Imperial College of Science and Technology, 1981 BSc (Hons) Engineering Geology, University of Newcastle testing phases of the operation. Various Gas Marketing studies, developing supply and demand predictions of gas markets in Australia and SE Asia, including assessment of breakeven cost of production for all potential supply options. Conducted survey of Maintenance, Modification and Operations opportunities in Australia for a major international Engineering Contractor. Conducted review of capital and operating costs, workover/infill well opportunities and subsequent economic evaluation of an Indian oil field. CAREER Prior to joining RISC was Consultant Business Advisor for Mobil E&P Australia In this role, reviewed new business opportunities and reported to the GM Business Development. Major responsibility was to recommend the optimum way for Mobil to commercialise gas interests in Papua New Guinea, with focus on export of gas to Queensland by pipeline. LNG, LPG and various other Gas to Liquids options were also reviewed. This involved economic evaluation and coordination of gas and liquids marketing, legal, commercial, process, facilities (including pipeline) and reservoir engineering issues. From was Coordinator for the Wandoo Asset Team Petroleum Engineering Group, responsible for a multidisciplinary group of 7 professionals including economics and planning, reservoir engineering, geophysics, completion design and installation, corrosion engineering and production chemistry during development of the Wandoo oil field. Key achievements included development of strategy for exploiting the potential of the Wandoo B production facility, development and implementation of Wandoo B startup plan and implementing a reservoir management plan for maximising production of Wandoo A early production system. Significant involvement with the novel Alliancing/Partnering methods used on the Wandoo project. From , as a member of CW International, developed and implemented new business processes and management systems. Clients included Enterprise Oil in UK and Australia, Amoco UK in London and Brunei Shell Petroleum. During the 1980s worked with BP Petroleum Development and Santos as a Petroleum Engineer in the North Sea, Africa, South East Asia and Australia