two

The second interesting thing announced.

I think OBL have kicked a goal with their professionalism in starting the work program on the Derby Block announced 11 March 2014. OBL are exercising their rights and expedite the work program. OBL are dealing with all interested parties and BOPL would want to attend the 25 April JOA. I would expect BOPL can not afford the work program and have an out with their BRU agreement. The smart thing would be for OBL and BOPL to come to terms. If BOPL does not want to participate OBL may have a reason to advise the DMP to forfeit their holding.

Work Program 2014
As Operator, petroleum exploration permit EP 487, in accordance with the terms of the grant, the Company has immediately advanced the 2014 operations and has on 7 April 2014 consequently given formal notice to Backreef Oil Pty Ltd (BOPL) of OBL’s intention of holding a formal initial EP 487 Joint Venture Meeting at our Melbourne Technical Offices during the week of 25 April 2014 in order to approve the immediate work program funding budget and to seek finalisation of the execution of the EP 487 Joint Operating Agreement (JOA). OBL has advised future 25% partner Octanex NL (ASX code OXX) of the proposed initial arrangements, who have confirmed that these are acceptable to OXX and has confirmed attendance at the meeting.
Initial Arrangements
The EP 487 participants were advised, on the grant of the permit by the Designated Authority (DA), that OBL as Operator was given an express request to report back to the DMP within a month regarding steps being taken to commence exploration activities on EP 487 in accordance with the approved EP 487 Year #1 Work Program (WP).

Given the short time window to be able to undertake significant operations before the onset of the next 2015 wet season, OBL has taken steps to expedite the work program approvals, and organised tender meetings with all key consultants/advisers while attending the recent Perth APPEA conference.

The Company formally advised its preferred seismic contractor of OBL’s intention to seek an updated quote and formal contract to conduct the 500 line km of 2D seismic during 2014. OBL has consulted with two highly experienced Perth based environment consultants (which OBL has used previously) and has called for tenders. OBL invited joint participant BOPL to attend these key WP operational briefings but neither BOPL nor its nominees attended.