HW-WLA (NETHERLANDS) Quarterly Report end February 2015

QUARTERLY ACTIVITY REPORT

NETHERLANDS End February 2015

NOTE – Any contribution from WLA to this report is based on publicly available information. Apart from this information this report is based on meetings and conversations plus scout information and some speculation. Accordingly, while every care is taken in the preparation of these reports, no investment decisions should be taken based on their content. Potential investors should make their own independent investigations and assessments before doing so. Information is strictly confidential and neither the source nor the content should be divulged to third parties

Quarterly Activity Report

© HW Atlas Ltd March 2015 NOTE - Any contribution from WLA to this report is based on publicly available information. Apart from this information this report is based on meetings and conversations plus scout information and some speculation. Accordingly, while every care is taken in the preparation of these reports, no investment decisions should be taken based on their content. Potential investors should make their own independent investigations and assessments before doing so. Information is strictly confidential and neither the source nor the content should be divulged to third parties

CONTENTS

INTRODUCTION ...................................................................................................................................... 3

COMMENTARY ........................................................................................................................................ 3

GOVERNMENT ........................................................................................................................................ 3 DRILLING ACTIVITY .................................................................................................................................. 3 LICENCES ............................................................................................................................................... 4 CURRENTLY DRILLING WELLS (AS AT 28 FEBRUARY 2015) ....................................................................... 4 DUTCH GAS FIELD EARTHQUAKE DANGERS RE–ASSESSED ......................................................................... 4 DENMARK: SUCCESSFUL APPRAISAL AT LILLE JOHN ................................................................................. 5

GAS MARKET DEVELOPMENTS 1Q2015 ............................................................................................. 7

LICENCE UPDATES ................................................................................................................................ 9

EXPLORATION AND PRODUCTION LICENCES (“PROVISIONALLY”) GRANTED SINCE 1 DECEMBER 2014 .......... 9 LICENCE AMENDMENTS SINCE 1 DECEMBER 2014 .................................................................................. 10 EXPLORATION AND PRODUCTION LICENCES EXPIRED/RELINQUISHED SINCE 1 DECEMBER 2014 ................ 11 CHANGES IN OPERATORSHIP SINCE 1 DECEMBER 2014 – PERMISSIONS GRANTED ................................... 11 LICENCE TRANSFERS (NOT INVOLVING THE OPERATOR) SINCE 1 DECEMBER 2014 – PERMISSIONS GRANTED

............................................................................................................................................................ 12

LICENCE OVERVIEW (CHANGES FROM PREVIOUS REPORT IN RED) ......................................... 13

APPLICATIONS FOR EXPLORATION AND PRODUCTION LICENCES PENDING ON 28 FEBRUARY 2015 ............ 13 EXPLORATION AND PRODUCTION LICENCES – SITUATION ON 28 FEBRUARY 2015 (MAP) ........................... 14 OFFSHORE BLOCKS UNDER LICENCE ON 28 FEBRUARY 2015 (TABLE) (CHANGES FROM PREVIOUS REPORT

IN RED) ................................................................................................................................................. 14 SURFACE RENTALS – RATES 2014 (2015 NOT YET PUBLISHED) .............................................................. 18

THE FALLOW ACREAGE PROCESS ................................................................................................... 19

OFFSHORE – PURSUANT TO MINING ACT AND COVENANT ....................................................................... 19 ONSHORE – PURSUANT TO MINING ACT ................................................................................................. 20


© HW Atlas Ltd Page March 2015 NOTE - Any contribution from WLA to this report is based on publicly available information. Apart from this information this report is based on meetings and conversations plus scout information and some speculation. Accordingly, while every care is taken in the preparation of these reports, no investment decisions should be taken based on their content. Potential investors should make their own independent investigations and assessments before doing so. Information is strictly confidential and neither the source nor the content should be divulged to third parties

3

INTRODUCTION

This is a further quarterly report produced jointly by Weisenborn-Linskaill & Associates (WLA) and the Hannon Westwood Group (HW) and the seventh that has been included as part of the Atlas services for UK and Norway by Hannon Westwood. Weisenborn-Linskaill is providing the report to its select list of contacts. This is the first of our reports to include an update on gas market developments, which is being provided by Erik Henneke of Cor Leonis Consultancy in cooperation with WDM-Energie. The intention is to provide these updates with each quarterly report. Any feedback from our clients would be welcomed. For some years now, WLA has been producing an accurate and very useful licensing update for The Netherlands on an ad hoc basis while HW has been developing and deepening its intelligence services in the UK and Norway. This report allies their respective expertise into one report so that further insight can be provided into the offshore and onshore oil & gas industry in The Netherlands. The format and content of the report has been arrived at through discussions between the two groups but we would welcome any feedback that our readership can provide.

COMMENTARY

Government

The oil and gas industry remains high on the political agenda, but unfortunately not in a very positive manner. On 18 February 2015 the Dutch Safety Board published its report “Earthquake risks in Groningen” in which it concluded that the safety of the people in Groningen had not been taken into account sufficiently when setting gas production levels from the Groningen Field (see also below under “Dutch gasfield earthquake dangers re-assessed”). Drilling Activity

At the end of this quarter there were 11 offshore and 3 onshore wells being drilled, compared to 12 offshore and 3 onshore wells that were active three months ago, albeit that several of the current offshore wells, on L05-D and L09-FA, are being batch drilled, as they were three months ago, so that the offshore figures are somewhat inflated. For the offshore there are 3 exploration, 1 appraisal and 7 development wells active. As at the end of November, GDF SUEZ remains active on exploration and development wells in Block L05 with the Noble Ronald Hoope rig drilling a development well through the L05-D platform, which commenced in June last year, while the Noble Regina Allen continues with drilling of one further development well through the L05-D platform. In addition GDF SUEZ is also active with development wells on E17-A and L10-L. NAM remains active on a double well programme with two exploration wells through the L09-FA platform, both utilising the Swift 10 minimum facilities rig. Wintershall is also active at present with three wells: appraisal well F17-13 is on its first sidetrack and development wells at K18-G and L06-B. Elsewhere TAQA is drilling a development well on the Rijn Field in P15. In onshore drilling activity, NAM is operating a development well at Coevorden and TAQA is completing a further gas storage well at the Bergermeer facility. The third well is active on salt exploration for AkzoNobel. 9 offshore and 6 onshore wells (including sidetracks) were completed during the last 3 month period, of which one of the offshore and one of the onshore wells were on hydrocarbon exploration; the other hydrocarbon wells being split between 3 appraisal and 5 development wells offshore and 5 onshore hydrocarbon wells with one observation well and two wells on each of development and gas storage at Bergermeer. The results of the one offshore exploration well to be completed have not been released,



4

this being Dana’s third sidetrack on F06-06. The exploration well drilled onshore at Anjum-06 by NAM resulted in gas shows. The other 8 offshore wells completed in the quarter resulted in two mechanical failures, two appraisal successes at F17-12 (oil) and M07-08 (gas) and two development successes at G14-B-04-S2 and L05-D-03 (both gas) with the results of K05-A-06-S1 not being released and K12-C-05-S1 recording only gas shows. Onshore, the observation well at Zeerijp-02 encountered gas for NAM close to Groningen. Three of the 4 onshore development wells were mechanical failures, all at Bergermeer, whilst a fourth well at Bergermeer for gas injection was successfully completed. Licences

During the last quarter two new applications were filed for an exploration licence: one for the offshore Block L3 and one for an area referred to as Slootdorp-Oost in the province of Noord-Holland. Competitive applications may be filed until 16 May 2015. The applications for an exploration licence for the offshore Blocks D9 and E7 were filed by GDF SUEZ. For these blocks there are no competitors. The procedure to grant the exploration licences for Blocks N4, N5, N8 and Q13b-deep has been initiated by the publication of the draft licences which were granted to Hansa (N4, N5 and N8) and GDF SUEZ (Q13b-deep). The terms of a record number of 15 licences were extended for periods varying between 3 months (Tullow’s exploration licences for Blocks E10, E11, E14, E15c and E18b) and nearly 16 years (NAM’s production licence for Block K14, now part Block K14a). Currently Drilling Wells (as at 28 February 2015)

Offshore E17-A-05 – GDF SUEZ, development well F17-13-S1 – Wintershall, appraisal well K18-G-02 – Wintershall, development well L05-15 – GDF SUEZ, exploration well L05-D-01, 02 – GDF SUEZ, development wells L06-B-01-S1 – Wintershall, development well L09-FA-104-S1, 105 – NAM, exploration wells L10-L-06 – GDF SUEZ, development well P15-RIJN-A-02-S1 – TAQA, development well Onshore BGM-03-S4 – TAQA, gas storage, development well BKM-02 – AkzoNobel, salt exploration COV-59 – NAM, appraisal well, Coevorden Dutch gas field earthquake dangers re–assessed

A report from the Dutch Safety Board has indicated that the dangers caused by gas extraction at the massive Groningen gas field have been ignored for years. Although a correlation between gas extraction and earthquakes in the region was evident in 1993, the level of risk to residents was not recognised and the Safety Board started an investigation a year ago to determine whether the safety of residents had been taken into consideration. The field is operated by the holder of the Groningen production licence NAM (a joint venture of Royal Dutch Shell and ExxonMobil )and output is jointly exploited with Dutch state participant EBN B.V. The Safety Board has now concluded that the field has been worked collectively with a common aim of



5

maximising production whilst considering that the safety risk to the population was negligible and thus disregarded the uncertainties surrounding this risk assessment. Gas extraction has resulted in increasingly strong earth tremors, some measuring as much as 3.6 on the Richter scale. The cost of damage repairs, structural improvements to buildings and compensation for home value reduction has been estimated at €6.5 billion. The Dutch government has ordered a reduction in production from the field to 16.5 bcm (583 bcf) in the first half of 2015 and is considering permanently reducing output to below a current annual cap for 2015 of 39.4 bcm (1.39 TCF). Indeed production could be as low as an annual 35 bcm (1.23 TCF) if studies indicate that a higher level is unsafe and if the Netherlands can still meet domestic needs and delivery contracts. Dutch gas exports in 2012 totalled nearly 57.3 bcm (c.2 TCF), or around 12% of Europe's gas demand, with about 75% of that total coming from the Groningen field. Denmark: Successful Appraisal at Lille John

Dana, as operator, has completed the drilling of the Lille John-2 (LJ-2) appraisal well and sidetrack and has confirmed the presence of sweet, light oil in the late Miocene sandstone reservoir around a salt diapir. The thickness and quality of the sandstone reservoir encountered in LJ-2 was found to be improved compared to that in the LJ-1 discovery well drilled in 2011. A drill stem test over the entire interval flowed at a maximum flow rate of 1,400 bopd (34°-35° API) with no sand production. The oil quality was similar to that found in the discovery well with no H2S. Work is ongoing to provide a revised estimate of volumes. Prior to the drilling of LJ-2, the range of recoverable resource was calculated to be 10-60 mmbbls. Licence 12/06 also contains the Broder Tuck gas-condensate discovery in the Middle Jurassic to the north of Lille John with recoverable resource estimated to be in the range 25-50 mmboe. Dana acquired 40% interest in the licence and assumed operatorship on 1 June 2014 from PA Resources. The current licensees are Dana Petroleum Denmark (40% and operator), PA Resources

Lille John

Broder Tuck

GERMAN

SECTOR

DUTCH

SECTOR

DANISH

SECTOR

Approximate LJ-2 surface

location



6

(24%),Nordsøfonden (20%), Danoil Exploration (8%) and Spyker Energy (8%). The location of Lille John immediately adjacent to the German sector’s Entenschnabel and only 25 kms from the Dutch sector allows Dana to consider cross-border development with its producing fields in the north of Dutch Quad F in F02a and F06a, though tie-in to nearer fields in the Danish sector must still be considered more likely.



7

GAS MARKET DEVELOPMENTS 1Q2015

Since 1 January, the average Dutch Title Transfer Facility (TTF) Futures gas price-curve for April 2015 – December 2020 has increased by 2.2% to €21.45 / MWh. TTF Day Ahead for 19 March 2015 is €21.17 / MWH, whereas TTF Month Ahead for April 2015 is €21.145 / MWh. Despite only average demand last month, spot gas prices followed the bullish trend on the curve and found support from unplanned maintenance in Norway.

Gas demand continued to weaken during March on the back of normal to above average temperatures across Europe. Consumption for West-Europe week dropped by 5% compared to weeks earlier. Expectations of below average temperatures for the first week of March and dwindling stocks provided additional bullish pressure. On the supply side, Norwegian production remained constrained by several unplanned outages and tightened the UK system. Russian flows through the NEL pipeline dropped to zero, leaving imports at an unseasonably low level. Dutch production was stable at around 205 mmcm/day. The announcement of the Dutch government to decrease the output of the Groningen gas field significantly to 16.5 bcm for the first half of 2015, lead to a significant increase in Futures gas prices. LNG send outs ramped up in Belgium ahead of the arrival of a spate of LNG tankers.

15

17.5

20

22.5

25

27.5

30

32.5

Jan/12 Jul/12 Jan/13 Jul/13 Jan/14 Jul/14 Jan/15 Jul/15 Jan/16 Jul/16 Jan/17 Jul/17 Jan/18 Jul/18 Jan/19 Jul/19 Jan/20 Jul/20

€/MWh (MOD)

Month

Dutch TTF Month Ahead Natural Gas Price

Range since 1st quote Range since 1/1/2015 Average TTF MA since 1st quote 17/03/2015

Actual TTF MA Annualised average full range Annualised average latest curve 31/12/2014Source: www.theice.com & Cor Leonis analysis

2.2%

17/03/2015 31/12/2014 ∆

Av. TTF Forward Apr 2015+ € 21.45 € 20.99 2.2%



8

In Asia, after a five-month fall Japanese, Korean & Malaysian (JKM) prices rebounded on stronger buying interest from portfolio players looking for spot cargoes to fulfil commitments in the Pacific basin as Atlantic cargoes are no longer diverted into Asia. After a bearish start on weak demand and a comfortable LNG supply outlook, concerns over Russian gas transit through Ukraine resurfaced and pushed European prices close to 2015 highs last week. Indeed, Ukrainian gas incumbent Naftogaz accused Gazprom of not meeting its daily gas nominations and consequently refused to make further payments without more guarantees from Gazprom and the EU. Russian President Vladimir Putin fuelled the bullish sentiment after he declared that gas supply to Ukraine will be suspended unless Kiev makes a fresh prepayment. The upward trend came to an end in the week of 2 March after the EU announced that a trilateral meeting in the gas dispute would take place in Brussels and Ukraine made a prepayment to Gazprom while the Ukrainian army declared it has started withdrawing heavy weapons in eastern Ukraine. This contribution to the Quarterly Analysis report was provided by Cor Leonis Consultancy B.V. in cooperation with WDM-Energie. Tailor-made gas market analysis services can be provided benefiting the Oil & Gas industry in various ways, such as asset-valuation, forecasting, hedging-decisions, price-validations etc. For more information, please contact Erik Henneke at [email protected], +31 (0)6 11239434.

mailto:[email protected]



9

LICENCE UPDATES

Exploration and Production Licences (“provisionally”) granted since 1 December 2014

Offshore (sea beyond 3 miles)

draft licence

(part) block exploration production area [km2] operatoravailable for public inspection

(6 w eeks) as of

publication

datein force

term

[years]

F10 x 401 Wintershall 26-sep-14 18-dec-14 22-nov-14 4

F11 x 401 Wintershall 26-sep-14 18-dec-14 22-11-2014 4

F14-shallow x 403 Wintershall 26-sep-14 18-dec-14 22-11-2014 4

N4 x 381 Hansa 12-dec-14



Q13b-deep x 369 GDF SUEZ 22-jan-15

licence

Onshore (land – sea up to 3 miles)

none



10

Licence Amendments since 1 December 2014


block exploration production operator amendment old new old new in force publication date

E3 x Wintershall

postponement

execution

w orkprogramme

n/a n/a n/a n/a 6-feb-15 18-feb-15

E10 x Tullow extension term 1-jan-15 1-apr-15 n/a n/a 22-nov-14 5-dec-14



E15c x Tullow extension term 1-jan-15 1-apr-15 n/a n/a 22-nov-14 5-dec-14

E18b x Tullow extension term 1-jan-15 1-apr-15 n/a n/a 22-nov-14 5-dec-14

F1 x Wintershall

postponement

execution

w orkprogramme

n/a n/a n/a n/a 6-feb-15 18-feb-15

F9

(now F9a)x Oranje Nassau

extension term/

reduction area2-jan-16 3-jan-17 400 86 16-jan-15

F17a-shallow x Sterling extension term 1-jan-16 1-jan-17 n/a n/a 20-feb-15 3-mrt-15

F18a-shallow x Sterling extension term 1-jan-16 1-jan-17 n/a n/a 20-feb-15 3-mrt-15

K14

(now K14a)x NAM

extension term/

reduction area16-jan-15 1-jan-31 412 237 23-dec-14 6-jan-15

L11c x Oranje Nassau extension term 3-jan-15 1-jan-16 n/a n/a 16-jan-15 5-feb-15

M2

(now M2a)x Oranje Nassau extension term 2-jan-16 3-jan-17 406 134 16-jan-15

M4

(now M4a)x Oranje Nassau extension term 1-nov-14 3-jan-17 408 209 16-jan-15

P18b x

TAQA

(previously Oranje-

Nassau)

extension term 4-jan-15 1-jan-17 n/a n/a 12-feb-15 4-mrt-15

Q7 x Tulip extension term 26-feb-15 26-feb-17 n/a n/a 12-feb-15 3-mrt-15

Q10a x Tulip extension term 26-feb-15 26-feb-17 n/a n/a 12-feb-15 3-mrt-15

expiry date/area licence area [km²]



11


none

Exploration and Production Licences expired/relinquished since 1 December 2014


block/area exploration production operatorrelinquished/w ithdraw n/

expired as of

date publication

relinquishment

L6d x Oranje Nassau 13-dec-14 6-jan-15

L16b x Oranje Nassau 12-nov-14 18-dec-14


none

Changes in Operatorship since 1 December 2014 – permissions granted


none


none



12

Licence Transfers (not involving the operator) since 1 December 2014 – permissions granted


licence exploration production operator eventdate publication

permisssion

L12a x GDF SUEZ

w ithdraw al Tullow Exploration &

Production Netherlands B.V./accession

Tullow Netherlands B.V.

5-feb-15

L12c x Tullow Netherlands B.V.w ithdraw al Tullow Exploration &

Production Netherlands B.V.10-feb-15

L12d x Tullow Netherlands B.V.w ithdraw al Tullow Exploration &


L12b/L15b x GDF SUEZ




5-feb-15

L15d x Tullow Netherlands B.V.w ithdraw al Tullow Exploration &


Q4 x Wintershall




5-feb-15

Q5d x Wintershall




5-feb-15

Q7 x Tulip w ithdraw al PA Resources 6-jan-15

Q10a x Tulip w ithdraw al PA Resources 6-jan-15


none



13

LICENCE OVERVIEW (changes from previous report in red)

Applications for Exploration and Production Licences pending on 28 February 2015


area/block exploration production PbEUclosing date

(inclusive)

applicant

(operator)

competitors

(operator)

D9 x 8-okt-14 7-jan-15 GDF SUEZ

E7 x 8-okt-14 7-jan-15 GDF SUEZ

L3 x 14-feb-15 16-mei-15


name provincearea

[km2]expl prod PbEU

closing date

competition

(inclusive)

applicant

(operator)

competitors

(operator)comments

De KempenNoord-Brabant

Zeeland1042 x 15-jun-11 14-sep-11

Basgas Energie

(Hutton Energy)

Brabant Resouces

(Cuadrilla)

shalegas

area

Breda-MaasNoord-Brabant

Limburg941 x 18-jun-11 19-sep-11

Brabant Resouces

(Cuadrilla)Gallic Energy

shalegas

area

Midden-Nederland

Utrecht/Flevoland/

Gelderland/Noord-

Brabant

4118 x 17-mrt-12 18-jun-12 BNK -shalegas

area

Waskemeer Friesland 47.29 x 22-mrt-14 23-jun-14 NAM -

Slootdorp-Oost Noord-Holland 327.7 x 14-feb-15 16-mei-15



14

Exploration and Production Licences – situation on 28 February 2015 (map)

Hannon Westwood has developed its own map for both onshore and offshore Netherlands. The map here shows the current licence situation along with the gas and oil fields and can now also include wells, pipelines and discoveries.



15

Offshore Blocks under Licence on 28 February 2015 (table) (changes from previous report in red)

block exploration production licensee expiry date PLA filed

A12a x Petrogas c.s. 11-aug-25

A12b x Petrogas c.s. 12-jan-00 *

A12d x Petrogas c.s. 11-aug-25

A15a x Petrogas c.s. 3-feb-27

A18a x Petrogas c.s. 11-aug-25

A18c x Petrogas c.s. 11-aug-25

B10a x Petrogas c.s. 12-jan-00 *

B10c x Petrogas c.s. 11-aug-25

B13a x Petrogas c.s. 11-aug-25

B16a x Petrogas c.s. 11-mei-97 *

B17a x Petrogas c.s. 2-jul-97 *

B18a x Centrica 10-okt-25

D12a x Wintershall c.s. 6-sep-21

D12b x Wintershall c.s. 7-apr-15

D15 x GDF SUEZ c.s. 6-sep-21

D18a x GDF SUEZ c.s. 9-okt-32

E1 x Centrica c.s 2-jan-16

E2 x Centrica c.s 2-jan-16

E3 x Wintershall c.s. 2-jan-16

E4 x Centrica 2-jan-16

E5 x Centrica 2-jan-16

E10 x Tullow 1-apr-15



E15a x Wintershall c.s. 21-okt-32

E15b x Wintershall c.s. 1-apr-33

E15c x Tullow c.s. 1-apr-15

E16a x GDF SUEZ c.s. 9-aug-21

E17a/b x GDF SUEZ c.s. 8-aug-21

E17c x GDF SUEZ c.s. 3-apr-15

E18a x Wintershall c.s. 21-okt-32

E18b x Tullow 1-apr-15

F1 x Wintershall c.s. 2-jan-16

F2a x Dana c.s. 24-aug-22

F3a x Centrica c.s 9-sep-22

F3b x GDF SUEZ c.s. 9-sep-22

F6a x Total c.s. 9-sep-22

F6b x Dana c.s. 19-mei-15

F9a x Oranje-Nassau 3-jan-17

F10 x Wintershall c.s. 22-nov-18

F11 x Wintershall c.s. 22-nov-18

F12 x Total

F13a x Wintershall c.s. 21-okt-32

F13b x Dana 21-sep-15

F14-shallow x Wintershall c.s. 22-nov-18

F14-deep x Wintershall c.s. 21-nov-15

F15a x Total c.s. 6-mei-31

F15d x Total c.s. 15-jun-32

F16 x Wintershall c.s. 21-okt-32

F17a-shallow x Sterling c.s. 1-jan-17

F17a-deep x Wintershall c.s. 25-aug-15 *

F17c x NAM 4-dec-24



16


F18-shallow x Sterling c.s. 1-jan-17

F18-deep x Wintershall c.s. 21-nov-15

G14 x GDF SUEZ c.s. 14-dec-19

G16a x GDF SUEZ 6-jan-32

G16b x GDF SUEZ 6-jan-32

G17a x GDF SUEZ 14-dec-19

G17b x GDF SUEZ c.s. 14-dec-19

G17c/d x GDF SUEZ c.s. 10-nov-25

G18 x Hansa 29-okt-18

H16 x Hansa 29-okt-18

J3a x Total c.s. 12-jan-36

J3b x Centrica 6-nov-32

J6 x Centrica 6-nov-32

J9 x NAM c.s. ?

K1a x Total c.s. 10-feb-22

K1c x GDF SUEZ c.s. 4-jan-17

K1b/K2a x Total c.s. 31-jul-22

K2b x GDF SUEZ 24-aug-23

K2c x Total c.s. 7-nov-21

K3a x GDF SUEZ 24-aug-23

K3b x Total c.s. 30-jan-21

K3c x GDF SUEZ 6-jan-21

K3d x Total c.s. 1-apr-24

K3e x Wintershall c.s. 4-jun-15

K4a x Total 29-dec-33

K4b x Total c.s. 1-jun-33

K5a x Total c.s. 1-jun-33

K5b x Total c.s. 7-nov-21

K6 x Total c.s. 20-jun-15

K7 x NAM 8-jul-21

K8 x NAM c.s 26-okt-17

K9ab x GDF SUEZ c.s. 11-aug-26

K9c x GDF SUEZ c.s. 18-dec-27

K11 x NAM c.s 26-okt-17

K12 x GDF SUEZ c.s. 18-feb-23

K14a x NAM 1-jan-31

K15 x NAM 14-okt-17

K17 x NAM 19-jan-29

K18a x NAM c.s. 9-mei-23

K18b x Wintershall c.s. 9-mei-23

L1a x Total c.s. 12-sep-16

L1d x Total c.s. 13-nov-16

L1e x Total c.s. 13-nov-18

L1f x Total c.s. 14-jan-33

L2 x NAM 15-mrt-31

L4a x Total c.s. 30-dec-21

L4c x GDF SUEZ 7-jan-34

L5a x GDF SUEZ 15-mrt-31

L5b x Wintershall c.s. 9-aug-38

L5c x Wintershall c.s. 3-dec-16



17


L6a x Wintershall c.s. 4-jan-31

L6b x Wintershall c.s. 11-aug-38

L7 x Total c.s. 20-jun-15

L8a x Wintershall c.s. 18-aug-28

L8b x Wintershall c.s. 17-mei-33

L9 x NAM 9-mei-35

L10 x GDF SUEZ c.s. 1-jan-25

L11a x GDF SUEZ c.s. 1-jan-25

L11b x Oranje-Nassau c.s. 15-jun-24

L11c x Oranje-Nassau c.s. 1-jan-16

L12a x GDF SUEZ c.s 14-mrt-30

L12b x GDF SUEZ c.s 12-mrt-30

L12c x Tullow c.s. 12-mrt-30

L12d x Tullow c.s. 14-mrt-30

L13 x NAM c.s 26-okt-17

L15b x GDF SUEZ c.s 12-mrt-30

L15c x GDF SUEZ 7-sep-30

L15d x Tullow c.s. 12-mrt-30

L16a x Wintershall c.s. 12-jun-24

M1a x Oranje-Nassau c.s. 8-aug-22

M2a x Oranje-Nassau 3-jan-17

M3 x Hansa 29-okt-18

M4a x Oranje-Nassau c.s. 3-jan-17

M7 x Oranje-Nassau c.s. 22-mrt-21

M9a x NAM c.s 10-apr-30

M10a/M11 x Tulip 1-jul-15

N1 x Hansa 29-okt-18

N7a x NAM 10-mrt-34

N7b x GDF SUEZ c.s. 10-mrt-34

P2a x Petrogas 3-apr-16

P6 x Wintershall c.s. 14-apr-22

P8a x Grove 1-dec-21

P9a/b x Petrogas c.s. 16-aug-33

P9c x Petrogas c.s. 16-aug-33

P10a x Dana 11-jul-20

P10b x Dana 19-mei-19

P11a x Oranje Nassau 2-aug-16 *

P11b x Dana 14-mei-19

P12 x Wintershall c.s. 8-mrt-30

P14a x Dana c.s. 23-jun-32

P15a/b x TAQA c.s. 12-jul-24

P15c x TAQA c.s. 7-mei-32

P18a x TAQA 30-apr-32

P18b x TAQA c.s. 1-jan-17

P18c x TAQA c.s. 2-jun-32

P18d x Oranje-Nassau c.s. 31-okt-27



18


Q1 x Petrogas c.s. 11-jul-20

Q2c x Petrogas c.s. 14-jul-34

Q4 x Wintershall c.s. 2-dec-19

Q5d x Wintershall c.s. 15-feb-21

Q7 x Tulip c.s. 26-feb-17

Q10a x Tulip c.s 26-feb-17

Q13a x GDF SUEZ 29-dec-21

Q13b-shallow x GDF SUEZ 1-mei-15

Q16a x Oranje-Nassau c.s 29-dec-32

Q16bc-shallow x GDF SUEZ 5-aug-15

Q16bc-deep x Oranje-Nassau c.s. 2-nov-27

S3a x Oranje-Nassau c.s. 2-nov-27

T1 x Oranje-Nassau c.s 2-nov-27

N.B. Filing a production licence application (PLA) extends the term of the exploration licence until the decision about the PLA becomes irrevocable Surface Rentals – Rates 2014 (2015 not yet published)

offshore exploration licences (beyond 3 miles) - rates for 2014

Period Rate per km²

1st to 6

th year incl. € 245.-

7th to 9

th year incl. € 491.-

Following years € 734.-

The rate for holding a production licence (onshore and offshore) is € 734 - per km². N.B. - no surface rentals due for onshore (including 3 miles zone) exploration licences;

- rental due by those who hold a licence on 1 January.



19

THE FALLOW ACREAGE PROCESS

Offshore – pursuant to Mining Act and Covenant

Covenant – hydrocarbon production licences and storage licences offshore (beyond 3 miles) Consequences of being a party to the Covenant - no withdrawal of Fallow area Under the Covenant, the MEA agreed not to consider, vis à vis those companies (of which there were initially 32 companies) that are a party to the Covenant, to withdraw those parts classified as Fallow of an offshore production licence for hydrocarbons or underground storage licence, unless exceptional circumstances or a 3

rd party request would provide the grounds for doing so.

The Fallow Acreage process – stimulation of activities/opportunities for 3

rd parties

For areas classified as Fallow on www.nlog.nl, the following procedure to stimulate activities has been agreed: 1. Licence holder Period For a period of nine months after (first) publication of a Fallow area, the licence holder is given the (exclusive) opportunity to submit an activity plan for (part of) the Fallow area. These nine months to be extended by three months if a request to transfer the licence has been filed three months or less before the end of the nine months period. If the activity plan is accepted by the MEA, (the relevant part of) the Fallow area will no longer be classified as Fallow and will be taken off the nlog publication. If no activity plan has been submitted or the plan submitted is not accepted, the Co-licence holders Period starts. 2. Co-licence holders Period For a period of three months after the end of the Licence holder Period, the Co-licence holders (individually, jointly or with a 3

rd party) are given the (exclusive) opportunity to submit an activity plan

for (part of) the Fallow area. If more than one acceptable activity plan is submitted, the MEA shall select one and the licence shall be split such that the area to which the selected activity plan is applicable will become a separate licence held by those that submitted this plan. The nlog publication shall be amended accordingly. If no activity plans have been submitted or none accepted, the Third Party Period starts. 3. Third Party Period As of the end of the Co-licence holders Period until submission of an activity plan by the licence holder, 3

rd parties (with or without one or more Co-licence holders) may submit an activity plan for (part of) the

Fallow area. Notification of the submission of an activity plan will be published on www.nlog.nl and for a period of three months after publication of this notification competing activity plans may be submitted. If more than one acceptable activities plan is submitted, the MEA shall select one and the licence shall be split such that the area to which the selected activities plan is applicable will become a separate licence held by those that submitted this plan. The nlog publication shall be amended accordingly.

http://www.nlog.nl/

http://www.nlog.nl/



20

Based on the right to submit an activity plan the timetable of the Covenant can be divided into the

following 3 phases:

phase period from fallow classification

[Months inclusive] parties that have the right to

submit an Activity Plan

1 0 - 9 all co-licence holders jointly

2 10 - 12 individual/joint co-licence holders

(jointly with/without 3rd

party)

3 >12 individual/joint co-licence holders

3rd

parties

N.B. The term of phase 1 may be extended by 3 months if the licence has been transferred to a new licensee during the last 3 months of phase 1. In this case, the subsequent periods will shift accordingly.

Onshore – pursuant to Mining Act

Mining Act - hydrocarbon production licences and storage licences Classification as Fallow Yearly (before 1 April), the MEA will publish on www.nlog.nl a list of those parts of all production licences for hydrocarbons and underground storage licences classified as Fallow. Areas are deemed Fallow if significant exploration, production or storage activities have not taken place for over two years and will not take place within a reasonable period of time. Classification takes place in consultation with the licence holder. Consequences of classification as Fallow – possible withdrawal of Fallow area Those parts of licence areas classified as Fallow may be withdrawn by the MEA, in which case the following procedure is applicable: 1. notification of licence holder of intent to reduce licence area by withdrawing those parts classified

as Fallow; 2. licence holder given six months to demonstrate that significant exploration, production or storage

activities will take place within a reasonable period of time; 3. MEA given four months to take decision about reduction of licence area. If no decision is taken

then the licence area is not reduced and, in case the area was after all to be reduced, the procedure is restarted.

http://www.nlog.nl/


Hannon Westwood Hannon Westwood has been advising the oil and gas industry since 1993 and provides a wide range of UKCS intelligence and business development services underpinned by proprietary data systems. Its team of experts offers clients unparalleled industry knowledge, commercial expertise and geo-commercial understanding. Head Office Charles Westwood: [email protected] Karen Alford: [email protected] Tel direct +44 (0) 141 534 7903 www.hannonwestwood.com HW Atlas Limited – A Limited Company Registered in Scotland. Company No. SC369635. Registered Office: 100 Brand Street, Glasgow. G51 1DG.

Weisenborn-Linskaill & Associates Weisenborn-Linskaill is a group of specialist lawyers from the upstream oil and gas industry offering advice and support to the oil and gas industry, investors and host governments. It advises on commercial and legal project viability and can assist with agreements, licence applications, acquisitions and commercial negotiations. Additionally it provides business assurance reviews for exploration and development projects. Netherlands contact Karin Weisenborn: [email protected] Tel direct +31 (0)70 387 38 62 Mobile +31 (0)6 460 78 260 UK contact Chris Linskaill: [email protected] Tel direct +44 (0)131 466 8653 Mobile +44 (0)7 857 911 968 www.wl-associates.com



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HW-WLA (NETHERLANDS) Quarterly Report end February 2015

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Transcript of HW-WLA (NETHERLANDS) Quarterly Report end February 2015