NEC-25 Block, India
The Company has a 10 percent working interest in the NEC-25 Block, with Reliance, the operator, holding a 60 percent interest and BP holding the remaining 30 percent interest. The remaining contract area comprises 9,461 square kilometres offshore adjacent to the east coast of India. Exploration and appraisal drilling has been conducted on the block and Reliance is working to finalize the development plan for discovered natural gas fields for submission by March 2013. Based on work done to date, the development is expected to include the re-entry and completion of certain existing wells and the drilling of new wells, all connected via new flow-lines and other facilities into a new offshore central processing platform. The produced natural gas is expected to be transported onshore via a new pipeline.
Block 5(c), Trinidad and Tobago
The Company has a 25 percent working interest in Block 5(c) with the BG Group plc ("BG Group"), the operator, holding the remaining 75 percent working interest in this offshore development area that covers 241 square kilometres. In October 2011, the BG Group submitted a development plan to the government of Trinidad and Tobago ("GTT") for approval. Development of natural gas production from two discovered fields in the block is expected to require the drilling of new wells, construction of new flow-lines and other facilities, and expansion of an existing platform in the adjacent Block 6(b) operated by the BG Group.
Exploration Opportunities
The Company's business strategy is to commit resources to finding, developing and producing exploration opportunities that have the potential for a "high impact"' on the Company. Exploration acreage is generally obtained by committing to acquire and process a specified amount of seismic and in most cases, drill one or more exploration wells. The Company generally uses advanced technology including high resolution multi-beam data collection and analysis, sub-sea coring and focused 3D seismic to reduce costs associated with selecting prospects to drill and increase the probability of success. The Company generally uses the information acquired to farm-out its blocks to world-class industry partners under terms where the partners fund their share of sunk costs and carry a disproportionate share of drilling costs.
The Company holds interests in contract areas covering 175,142 gross square kilometers of undeveloped land, primarily in Indonesia and Trinidad and Tobago.
Indonesia
The Company holds interests in 22 offshore exploration blocks in Indonesia, covering 119,145 square kilometers. The Company has successfully farmed out interests in several of its blocks and is working with various parties on additional farm-outs to reduce its share of future drilling costs. The table below indicates the operator, the location of, the award date, working interest and the size of the block, as at December 31, 2012.
---------------------------------------------------------------------------- Working Area (SquareBlock Name Operator Offshore Area Award Date Interest Kilometres)----------------------------------------------------------------------------Lhokseumawe Zaratex Aceh Oct. 2005 30% 4,431Bone Bay Niko Sulawesi S Nov. 2008 100% 4,969 MakassarSouth East Ganal Niko Strait Nov. 2008 100% 4,868Seram Niko Seram NE Nov. 2008 55% 4,991South Matindok Niko Sulawesi NE Nov. 2008 100% 5,182 MakassarWest Sageri Niko Strait Nov. 2008 100% 4,977Cendrawasih Exxon Papua NW May 2009 45% 4,991Kofiau Niko Papua W May 2009 57.5% 5,000Kumawa Niko Papua SW May 2009 100% 5,004East Bula Niko Seram NE Nov. 2009 55% 6,029Halmahera-Kofiau Niko Papua W Nov. 2009 51% 4,926 MakassarNorth Makassar Niko Strait Nov. 2009 30% 1,787West Papua IV Niko Papua SW Nov. 2009 51% 6,389Cendrawasih Bay II Repsol Papua NW May 2010 50% 5,073Cendrawasih Bay III Niko Papua NW May 2010 50% 4,689Cendrawasih Bay IV Niko Papua NW May 2010 50% 3,904Sunda Strait I Niko Sunda Strait May 2010 100% 6,960Obi Niko Papua W Nov. 2011 51% 8,057 MakassarNorth Ganal Eni Strait Nov. 2011 31% 2,432Halmahera II Statoil Papua W Dec. 2011 20% 8,215South East Seram Niko Papua SW Dec. 2011 100% 8,217Aru Niko Papua SW July 2012 60% 8,054----------------------------------------------------------------------------
