Ann: Binding farmout agreement signed for Block 9, page-23

Happy new year to all...I have been intentionally quiet of late.

Great start to the MAY new year and hopefully we are a step closer to corporate changes into a dual listing, which is where we now need to be.

My take on things.

1- I believe profit Oil is apportioned from day 1 of downstream sales and has applicable tax and royalties to be paid on it, I believe the Cuban set up is maximum 60 % of oil can be offset against backcosts until recouped and remaining 40% is classed as profit oil which must have the applicable taxes and royalties paid , this would also indicate that MAY would receive 12.5% from the 40% + additional proportion for their own backcosts ( until backcosts paid) of first commercial oil down stream.

So that would be a net 5% of oil sales at benchmark pricing to MAY from day 1 plus additional agreed percentage to recoup our own backcosts costs minus applicable taxes and royalties.....

based on a very conserative 6,000 barrels a day at onset of commercial success and downstream infrastructure in place  this equates to 300-350 barrels a day of profit oil to MAY which will increase acutely as the consortiums capex costs are paid.

if commercial discovery from any wells, there will be appraisal drilling and tie in to existing infrastructure all covered by AGMI.

2- AGMI / AMEC are liable for the Cuban cash bond guarantee and I note the term for repayment are due very soon.

i am sure we will receive news on this soon.

3 - AGMI / AMEC using their own rigs is good to keep costs down and there will always be a better synergy if the operators are also the drillers using their own crews and equipment rather than a third party drilling contractor....less costs , more profit oil sooner.

We must now in the way this is going receive heavy newsflow, first well is meant to be spudded in April, massive amount of things must happen up to then..

We should receive news on the lines of.

• Clarity regarding the loan repayment
• final binding regularity approvals 
• news on rig import and mobilisations / stack up.
• news on civil works and preparations.

Still early days here with a massive amount of work to be done, however no one can deny or diss the progress we have been making in all our operations and RZ is doing exactly as stated in very tough times.

will the ASX absorb this story positively and want to get on it , that is the $64,000 question.

This is turning into a potential company changer in its own right...we have a 20 year tenureship on this block...

exciting 2019 indeed !