Ann: Annual Report to shareholders, page-5

Just a few impressions re: EWC 2014 Annual Report:


Indonesia:
Given that most of 2014 was taken up by parliamentary and Presidential elections, it is my observation that EWC’s will want to await the allocation of ministerial portfolios following Jokowi’s inauguration on 20 October, 2014, before progressing drilling and capital works submission to SKKMigas, formally entering into lng sales arrangements etc. as the new ministers (or even President) will need to put their imprimatur on these arrangements. In any case it is best to have the ok of the new minister for these long term arrangements. Given that current gas reserves are sufficient for operating 0.5mtpa lng plant for 6 years and that the revenue from such lng sales will pay off the total equipment costs ($352million) of the 2mtpa lng plant, S. Elliott’s approach for a staged development of lng production (i.e 0.5mtpa every 3 to 6 months) seems ‘to be paying off’.

Philippines:
New financial arrangements re: lng hub and power plant are progressing well and SCPE’s position re: $25million convertible note does not seem to be pose any problems as can be evidenced by the fact that the construction of the second 130,000m3 lng storage tank seems imminent with pouring the concrete blinding for the second tank having commenced (page 48 AR).

The new timelines are as follows:
Sengkang lng: first 0.5mtpa commercial between March and June 2015.
Philippines lng hub: commercial operation between March and June2015.
Philippines power plant: First 200mw turbine operational by March 2015, Second 200mw turbine operational by June 2015, Third 200-25mw steam turbine operational by March 2016.