RELINQUISHMENT REPORT

Promote Licence: P1959

Block 30/21

March, 2015

Table of Contents

List of Tables and Figures

1. Licence Information

2. Synopsis

3. Work Program/Exploration Activity Summary

4. Database

5. Prospectivity Update

6. Resource Summary

7. Clearance

List of Tables & Figures

TABLE NO. TITLE

Table 1 Technical Summary of 3D

Table 2 List of Wells

FIGURE NO. TITLE

Figure 1 Local Blocks and Fields

Figure 2 Local Fields and 3D Coverage

Figure 3 Schematic of Geology

Figure 4 Chalk Time Structure

Figure 5 Rotliegend Depth Structure

Figure 6 Seismic Cross Section through Murre Feature

Figure 7 Structure Showing Divergent Migration Pathways

Figure 8 Seismic Database

1. LICENSE INFORMATION

Licence Number: P1959

Licence Round: UKCS 27th round of Offshore Licensing

Licence Type: Promote

Block Number(s): 30/21

Operator/Partners: 4Gen Energy (100%)

Work Programme:

1) Acquire complete 3D seismic coverage between “South Auk” leads in Block

30/21 to Auk field in Block 30/16 and compare South Auk prospect to Auk

field. Purchase seismic data over southern part of Quad 30 for regional

mapping.

2) Clastic sedimentologist to evaluate core and cuttings; petrophysicist to

evaluate logs of adjacent wells, including Auk field.

3) Reprocess and reinterpret seismic coverage.

4) Migration path is the key risk. Trace oil migration path from Kimmeridge clay

source rock in Central Graben. This may be from the east, via Fulmar and

Auk, or by a longer and more circuitous route from the south and east. This

will require a full charge and migration study of the area.

5) A development plan will include tie-in to Auk Facilities. Model Auk

production history and throughput capacity to determine availability.

6) Develop drillable exploration prospect.

7) Drill or drop.

2. Synopsis

Block 30/21 is located immediately south of the prolific Auk Permian field in the Central North

Sea. 4Gen Energy was awarded the Block in the UKCS 27th Round.

Figure 1, below, illustrates the local situation.

Figure 1 – Local Blocks and Fields

During the geotechnical review of the area, 4Gen identified a large Permian structural lead

south of Auk.

The “Murre” lead is primarily a structural feature that is well defined on seismic as a closed high

that may also have additional stratigraphic closure in the deeper portions of the Permian.

30/21

Only one well, 30/21-1, drilled by Shell in 1989, exists on the Block.

Figure 2, below, illustrates the local fields and 3D coverage as well as the location of the Murre

lead.

Figure 2 – Local Fields and 3D Coverage Purchased by 4Gen Energy

The basic geology of the reservoir zones can be summarized in the schematic illustration of the

only well on the Block 30/21-1, shown below. For the Murre feature, the primary target zones

are the Zechstein and Rotliegend zones, which are productive at Auk.

Figure 3 –Schematic of Geology

3. Exploration Activities

4Gen Energy originally committed to purchasing portions of the existing 3D over South Auk and

encompassing the existing leads on the south of 30/21; however, after reviewing this portion of

the 3D, it was decided to extend the size of the purchased 3D to include the Northern portions

of Auk as well as representative Jurassic fields in the Janice and Fulmar areas. See Figure 2,

above, as well as Figure 4 below, which represents a Time Structure grid of the Chalk marker,

effectively demonstrating the imaging of the 3D at depth.

The final subsurface coverage area is approximately 651 sq km, while the original data set was

only 275 sq km.

The two primary reasons for this expanded purchase were to understand the local and regional

migration patterns and, secondarily, to map possible Jurassic sand leads.

Figure 4 Chalk Time Structure

A technical summary of the 3D is presented in Table 1 below.

Seismic Survey Operator/Contractor Comments

Terracube Regrid Robertson GeoSpec Average quality. 4msec sampling

4Gen Energy initiated the project by re-analyzing and reinterpreting the entire 3D area.

Particular care was taken in examining the structural regions adjacent to the pools and into the

‘kitchen’ area to the north and north east which may provide migration pathways.

It was recognized early in the process that the most important part of the evaluation was

establishing migration pathways, so consequently considerable effort was concentrated in

Chalk Time Structure

attempting various depth conversions which might reveal previously ignored pathways. This

effort reduced effort directed toward stratigraphic understanding of the Auk pool, since the

critical element is migration.

The map below, Figure 5, shows the depth conversion of the Rotliegend formation throughout

the area considered prospective for Rotliegend (and Zechstein). Note that the closed area to

the North East, the Andromeda prospect, which includes a by-passed zone in the existing well

29/20-1, provides a loose template for the Murre prospect.

Figure 5 Rotliegend Depth Structure

A NW to SE seismic cross section trough the Murre structure is shown below in Figure 6,

illustrating the robust nature of the structure and the reliability of the data.

14

Depth Structure Map, Top Rotliegend

Contour Interval = 50 feet

Murre

Prospect

Auk Field

Andromeda

Prospect

Figure 6 -- Seismic Cross Section through Murre Feature

As has been stated, one of the principle exploration activities conducted by 4 Gen Energy was

to conduct a complete migration analysis project using 4 Gen Energy’s consultants Geomega.

The information discussed below constitutes a small part of the complete study.

The primary conclusion of the study is that direct migration into the Murre prospect from the

main source kitchen areas is extremely difficult.

The image below, Figure 7, illustrates the tectonic setting of the Murre prospect using the

Rotliegend depth map at the south end of the Auk structure.

The source rock and ‘kitchen’ are known to be in the north and north east area.

Key to this analysis is the observation that the Auk structure itself is not filled to the spill point,

so that any successful migration into the Murre structure would have to constitute an

independent pathway, since current mapping implies migration either into Auk or away from

Murre.

A similar map is obtained using a flattened Chalk datum, indicating that successful migration at

that time would also be difficult.

Figure 7 Structure showing divergent migration pathways

Geomega postulated that successful Murre charging was possible if Auk was fully filled at some

time in the past and that a subsequent breech changed the oil water contact at a later time.

Although possible, this seems a remote possibility.

Another unlikely possibility, but still conceivable, would be that Murre was charged by

migration from the Kimmeridge source rock in a pathway through the underlying Devonian

rocks. Devonian oil production exists in the Argyll (or Alma) field to the east, so entry and

migration of oil in the Devonian is possible.

4. Database

The map below, Figure 8, illustrates the seismic database used for the evaluation of Block

30/21. The original 3D purchase was expanded to the NE to include Fulmar fields as templates

for the exploration of Block 30/21. The 3D is approximately 735 sq km in size.

Auk

Figure 8 – Seismic Database

Full or partial datasets were also obtained for the following wells for stratigraphic and

petrophysical analysis:

30/21

TABLE 2 Wells Well

29/20-1 29/20b-2 30/16-4 30/16-5 30/16-6 30/16-15z 30/17a-10 30/17b-2 30/21-1 30/22b-1 30/22b-2

5. Prospectivity Update

4Gen Energy was unable to define a convincing migration pathway into the Murre structure,

and therefore considers the structure to be high risk. As determined in the migration analysis,

only a non-standard migration pathway, for example through the Devonian, would seem likely

to fill the Murre structure.

6. Resource Summary

Based on seismic mapping and the offsetting Zechstein and Rotliegend production, 4Gen

estimates a Pmean resource of 32.1 Million Bbls of Oil Recoverable, Unrisked. The P10 or

Upside resource estimate is 61.7 Million Bbls of Oil Recoverable, Unrisked. Note that these

estimates include multiple target levels, as is found in the Auk field.

7. Clearance

4Gen Energy has reviewed the contents of this report and gives its approval for its publication.