## 3. Appraise ASSESS THE COMMERCIALITY 

If the drilling campaign results in the successful discovery of hydrocarbons, then an appraisal programme will be executed in order to constrain the resource estimates and to assess the commerciality of a potential development project. 

Typically, several more wells will be drilled. Coring and reservoir flow tests will be undertaken and exhaustive reservoir studies completed. 

Positive results from this technical work will lead to detailed facilities engineering studies prior to a Final Investment Decision ahead of proceeding into a Development project. 

## PROGRESS IN 2014 

• The Company, with its adviser, continued to seek partners to fund the next phase of operations which would include the appraisal of the Darwin discovery and potentially other exploration 

## OUTLOOK 

• Whilst the decline in oil prices during 2014 has put considerable pressure on oil projects around the world, Darwin is robust at oil prices lower than current levels. Further, exploration costs are declining so the capital required to fully appraise Darwin has significantly reduced 

• The Company remains confident that a partner will be found and the appraisal programme advanced 

## 4. Accrete BUILD A STRONG POSITION 

Once a working petroleum system has been demonstrated through the discovery of hydrocarbons, the objective will be to maximise the acreage position and add value to the asset. 

Near field targets will be tested to extend the discovery and exploration will continue focusing on analogue prospects within the prospect inventory. 

Alternative play types will also be tested in order to assess the overall value of the acreage. 

## PROGRESS IN 2014 

• We received the processed merged PSDM 3D data and we carried out an initial interpretation 

• We initiated a seismic inversion project to aide the reservoir characterisation and help de- risk the prospect portfolio and identify additional targets 

• We also evaluated the shelf portfolio to assess volumes and to help high grade exploration targets 

• The Darwin field volumetrics were re-assessed incorporating additional stacked pay intervals 

## OUTLOOK 

• We plan to fully integrate the inversion data to continue with the portfolio assessment 

• We will also evaluate the slope and basin floor targets to integrate into the prospect portfolio 

## 5. Monetise MAXIMISE ASSET VALUE 

Partial monetisation can occur at all stages of the business cycle. Partners can be brought into a project soon after Access or during the Exploration, Appraisal and Accrete phases in order to help fund further work. 

But maximum value will be obtained following the Appraisal and Accrete phases. 

B&S believes its core skills lie in the pre-development phase of the Exploration and Production cycle and will seek to monetise pre- production or partially monetise and retain a lower interest non-operated role through production. 

## PROGRESS IN 2014 

• The Company believes that bringing in a partner is the best option to fund the next phase of work 

• Once the Darwin discovery is appraised, the Company will have more options of funding the development 

## OUTLOOK 

• The oil and gas industry has witnessed oil price rises and declines many times. During oil price declines, the industry tends to allocate funding to the best/ lowest cost projects and Darwin is such a project so we are confident that a fully appraised Darwin will attract development funding 

