Well, I thought I'd change the subject.Second payment due...

Well, I thought I'd change the subject.

Second payment due tomorrow will pay for extra work on Big W.
Third payment when rig is on location.

OMV acquired the new 3D seismic survey over the Matuku structure within PEP 51906 and completed the interpretation and mapping of the data in Q1 2012. As a result of the work done on the new 3D data, and following a variety of detailed studies, OMV advised Octanex that its mapping of Matuku confirmed it as a valid structural closure at the target levels; with estimated mean recoverable resource, if there are hydrocarbons in the prospect, of approximately 65 million barrels.
The studies undertaken by OMV indicate that the Matuku prospect is robust. It has a perceived low risk associated with the existence of the structure, presence of suitable reservoir rock and adequacy of seal. OMV’s basin modelling studies suggest the presence of a substantial source kitchen (within the Kahurangi Trough to the immediate south and west of the prospect) that is mature for the generation of oil.
In November 2012, OMV committed to drill the Matuku-1 exploration well in PEP 51906 – see Figure 15 following, the Matuku-1 Well Location Map.
In the event of success at Matuku-1, the most likely follow up well to explore further possible closures would be sited on the northern lobe of the Matuku structure. There are contingent plans for the drilling of a Matuku-2 exploration well (see Figure 15) in the event of a discovery being made at Matuku-1.
Site surveys over the planned locations of Matuku-1 and the potential Matuku-2 wells were undertaken during the previous quarter. Site surveys were also carried out over relief well locations adjacent to both sites, as were pre-drill environmental baseline and monitoring surveys.
OMV has also identified further potential follow up targets, situated to the north and east of the Matuku prospect that will warrant additional investigation in the event of success at Matuku-1 (see Figure 15).
On 29 November 2012, Octanex sold a 12.5% interest in PEP 51906 to NZOG for US$12,500,000. The sale proceeds are payable in three tranches:
? the first, of US$3,000,000, was paid in February 2013 following Ministerial consent to the transfer of the permit interest;
? the second, of US$3,250,000, will be paid on 6 August 2013, as all drilling consents have been received; and
? the third, of US$6,250,000, will be paid when the Kan Tan IV drilling rig is on the Matuku-1 well location (scheduled for September 2013).