P1430 Retention/Relinquishment

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Exploration

P1430 Part Relinquishment Report

1 CONTENTS

1.0 Header ............................................................................................................................ 2

2.0 Synopsis .......................................................................................................................... 2

3.0 Exploration Activity .......................................................................................................... 3

4.0 Bonneville Development ................................................................................................. 3

5.0 Maps and Figures ........................................................................................................... 4

6.0 Clearance ........................................................................................................................ 9

LIST OF FIGURES

Figure 1 Showing the original area covered by the license (pale blue) 4

Figure 2 Showing the area to be relinquished in red hatching. 5

Figure 3 Showing the retained areas. 6

Figure 4 Depth structure Map of Bonneville 7

Figure 5 Far Stack Coloured Inversion. 8

P1430 Retention/Relinquishment

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1.0 Header

2.0 Synopsis

The P1430 licence shown in blue in Figure 1 was granted in July 2007 and covers UKCS blocks 28/9a and 28/10c. This area includes the Catcher, Burgman and Varadero Fields, which were approved for development in June 2014. Two further discoveries Carnaby and Bonneville were made on the licence. The original terms of the P1430 licence require relinquishment of all areas outside the approved development areas by the end of the licence second term i.e. 31st March 2015. Three areas of the licence were relinquished at that time as illustrated in Figure 2, but an extension to 31st December 2015 was also given for the remaining to allow further time to evaluate Bonneville and make a decision as to whether or not a FDP for Bonneville should be submitted. It has now been decided and agreed by the JV to relinquish the remaining areas of the licence outside the field development areas including Bonneville area too as per Figure 3.

LICENCE NUMBER P1430

LICENCE ROUND July 2007 granted.

LICENCE TYPE Traditional Second Term

BLOCK NUMBER(s) 28/9a

PARTNERS Premier (50%), Cairn (20%), MOL (20%), Dyas (10%)

WORK PROGRAMME Execute Approved FDP Work Programme

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3.0 Exploration Activity

The Catcher field was discovered in May 2010 by well 28/9-1, and was further appraised with subsequent sidetracks in Q2 2010 (28/9-1Z and -1Y). Following the Catcher discovery, the Varadero and Burgman fields were discovered by wells 28/9-2 and 28/9-4 respectively and Catcher was also appraised with the 28/9-3 well, due north of 28/9-1. In June 2012 the Carnaby discovery was made by well 28/9-5A, followed by Bonneville in March 2013 with wells 28/9a-6 and 6Z. The exploration and appraisal activity is summarized in the below:

well TD date Field Comment Operator 28/09-1 31/05/2010 Catcher Discovery Encore 28/09-1z 23/06/2010 Catcher East Appraisal Encore 28/09-1y 02/07/2010 Catcher West Appraisal Encore 28/09-2 31/12/2010 Varadero Discovery Encore

28/09-3 05/02/2011 Catcher North North Appraisal Encore 28/09-4 24/03/2011 Burgman Discovery Encore 28/09-4z 27/03/2011 Burgman Appraisal Encore 28/09-5a 07/06/2012 Carnaby Discovery Premier 28/09-6 30/03/2013 Bonneville Discovery Premier 28/09-6z 16/04/2013 Bonneville Appraisal Premier

Table 1 Summary of drilling Activity in License P1430

Extensive studies have been carried out in the areas outside the field development areas to rank the remaining seismic anomalies identified using the proven techniques developed in the Field areas. This resulted in the recommendation to relinquish all remaining areas outside those approved for development including Bonneville, see details below

4.0 Bonneville Development

The Bonneville discovery was evaluated using the same approach as for the Catcher, Varadero and Burgman fields and Table 2 shows the range of probabilistic oil and gas reserves in MMboe

Oil and Gas (MMboe)

Low Mid High

Cut-off 1/1/2025 1/1/2025 1/6/2026

Reserves 0.67 1.0 1.4

Table 2 Bonneville development oil reserves

With this level of reserves and current oil prices the development of Bonneville via a single well tie-back to the FPSO is not economic. Therefore it has been decided not to proceed with the FDP and thus in accordance with the licence terms the area has to be relinquished.

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5.0 Maps and Figures

Figure 1 Showing the original area covered by the license (pale blue)

Varadero

Catcher

Burgman

Bonneville

Carnaby

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Figure 2 Showing the area to be relinquished in red hatching.

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Figure 3 Showing the retained areas.

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Figure 4 Depth structure Map of Bonneville

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Figure 5 Far Stack Coloured Inversion.

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6.0 Clearance

The information herein is cleared for publication by the DTI.