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Licence P2503



@



Petroleum Act 1998



SEAWARD PRODUCTION LICENCE

THE OIL AND GAS AUTHORITY



and

SUMMIT EXPLORATION AND PRODUCTION LIMITED



LICENCE



to search and bore for and get petroleum



Licence P2503

For the purposes of section 4(1)(e) of the Petroleum Act 1998 the model clauses

applicable to this licence are the model clauses set out in The Petroleum Licensing

(Production) (Seaward Areas) Regulations 2008 as amended by The Petroleum and

Offshore Gas Storage and Unloading Licensing (Amendment) Regulations 2017.

This Licence, made 11



J(90\24'22l



between the Oil and Gas Authority, of the one part and the companies listed

Schedule 4 of the other part, witnesseth as follows: -



in



Interpretation, etc.

1. -(1) In this licence, the following expressions have the following meanings"the Act" means the Petroleum Act 1998;

"Block" means an area comprised in this licence which is delineated on the



reference map deposited at the principal office of the OGA and to which a

reference number was assigned at the date of this licence;

"Development Scheme" has the meaning given by clause 27;

"Early Surrender Area" means the area (if any) specified as such in Schedule

5 to this licence;

"Early Surrender Period" means the period (if any) specified

Schedule 5 to this licence;



as such



in



"Fragmented Licensed Area" means a Licensed Area consisting in two or

more areas any one or more of which is separated from the others;

"Half Year" means the period from 1st January to 30th June in any year and

the period from 1st July to 31st December in any year;

"Initial Licensed Area" means the area described in Schedule 1 to this licence

on the date it was granted;

"Initial Term" means the period beginning with the date on which this licence

is granted and ending on the last day of Phase C;

"Licensed Area" means the area for the time being in which the Licensee

may exercise the rights granted by this licence;

"the Licensee" means the person or persons to whom this licence is granted,

his personal representatives and any person or persons to whom the rights

conferred by this licence may lawfully have been assigned;

"Mandatory Surrender Area" means the area specified as such in Schedule 5

to this licence;

"the Minister" means the Secretary of State for Business, Energy and

Industrial Strategy;

"the OGA" means the Oil and Gas Authority;

"Oil Field" has the meaning given in clause 27;

"Petroleum" includes any mineral oil or relative hydrocarbon and natural gas

existing in its natural condition in strata but does not include coal or

bituminous shales or other stratified deposits from which oil can be extracted

by destructive distillation;

"Phase A" means the period (if any) of the Initial Term specified as such in

Schedule 5 to this licence";

"Phase B" means the period (if any) of the Initial Term specified as such in

Schedule 5 to this licence";

"Phase C" means the period of the Initial Term specified as such in schedule

5 to this licence";

"Second Term" means the period specified as such in Schedule 5 to this



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licence;

"Section" means a part of a Block comprising an area bounded by minute

lines of latitude and longitude one minute apart respectively;

"Start Date" means the date specified as such in Schedule 5 to this licence;

"Third Term" means the period specified as such in Schedule 5 to this

licence;

"Well" includes borehole;

"Work Programme" means the programme set out in Schedule 3 to this

licence.

(2) Any obligations which are to be observed and performed by the Licensee shall at

any time at which the Licensee is more than one person be joint and several



obligations.



Grant of Licence

2. In consideration of the payments hereinafter provided for and the performance and

observance by the Licensee of all the terms and conditions hereof, the OGA, in

exercise of the powers conferred upon it by the Act hereby grants to the Licensee

exclusive licence and liberty during the continuance of this licence and subject to the

provisions hereof to search and bore for, and get, Petroleum in the sea bed and



subsoil under the area described in Schedule 1 to this licence provided that nothing

licence shall affect the right of the OGA to grant a methane drainage licence in

respect of the whole or any part of the Licensed Area or affect the exercise of any

rights granted under any such methane drainage licence.

in this



Term of Licence



3.-(1) This licence shall commence on the date on which



it is



granted.



(2) Unless sooner determined under any of its provisions, this licence shall continue(a) for the Initial Term, subject to clause 10 and (where applicable) clauses 4

and 5;

(b) for the Second Term, subject to clauses 6 and 10;

(c) for the Third Term, subject to clauses 8 and 10.

(3) On expiry of the Third Term, this licence shall determine unless extended

accordance with clause 9.



in



Initial Term

4. -(1) Where a Phase A is specified but no Phase B is specified, this licence shall,

unless the OGA in its discretion decides otherwise, automatically cease and

determine on the expiry of Phase A in the event of failure by the Licensee before

expiry of that phase to( a) take the actions that are described in the section of the Work Programme

applicable to Phase A;

{b) undertake to complete before the expiry of Phase C the work described in

the section of the Work Programme applicable to Phase C; and

(c) demonstrate to the satisfaction of the OGA (whose decision shall be final)(i) the financial capacity of the Licensee to meet the obligations

undertaken under sub-paragraph {b) in addition to all of the

obligations imposed by this licence; and



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Licence P2503



®



the competence of the relevant persons to organise and supervise

any of the operations of searching or boring for Petroleum.

(ii)



(2) Where no Phase A is specified but a Phase B is specified, this licence shall,

unless the OGA in its discretion decides otherwise, automatically cease and

determine on the expiry of Phase B in the event of failure by the Licensee before

expiry of that phase to( a) take the actions that are described in the section of the Work Programme

applicable to Phase B;

(b) undertake to complete before expiry of Phase C the work described in the

section of the Work Programme applicable to Phase C; and

(c) demonstrate to the satisfaction of the OGA (whose decision shall be final)(i) the financial capacity of the Licensee to meet the obligations

undertaken under sub-paragraph (b) in addition to all of the

obligations imposed by this licence; and

(ii) the competence of the relevant persons to organise and supervise

any of the operations of searching or boring for Petroleum.

(3) Where both a Phase A and a Phase



Bare specified-



(a) this licence shall, unless the OGA in its discretion decides otherwise,

automatically cease and determine on the expiry of Phase A in the event of

failure by the Licensee before expiry of that phase to(i) take the actions that are described in the section of the Work

Programme applicable to Phase A; and

(ii) undertake to complete before the expiry of Phase B the work

described in the section of the Work Programme applicable to Phase



B;and



(b) if this licence continues to Phase B, this licence shall, unless the OGA in

its discretion decides otherwise, automatically cease and determine on the

expiry of Phase B in the event of failure by the Licensee before expiry of that

phase to(i) take the actions that are described in the section of the Work

Programme applicable to Phase B;

(ii) undertake to complete before the expiry of Phase C the work

described in the section of the Work Programme applicable to Phase

C; and



demonstrate to the satisfaction of the OGA (whose decision shall

be final)(aa) the financial capacity of the Licensee to meet the

obligations undertaken under paragraph (ii) in addition to all

of the obligations imposed by this licence; and

(bb) the competence of the relevant persons to organise and

supervise any of the operations of searching or boring for

Petroleum.

(iii)



(4) Where a deadline specified in the Work Programme for any action to be taken

does not coincide with the date of expiry of any of Phases A, B and C, this licence

shall, unless the OGA in its discretion decides otherwise, automatically cease and

determine on the expiry of that deadline in the event of failure by the Licensee to take

the action required by that deadline.

(5) The OGA may decide that this licence shall not automatically cease and

determine in accordance with paragraphs (1) to (4) of this clause only if the Licensee



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Licence P2503



consents.

(6) The relevant persons referred to in paragraphs (1)(c)(ii), 2(c)(ii) and (3)(b)(iii)(bb)

of this clause are(a) any persons nominated by the Licensee for approval under clause 24 of



this licence; or

(b) the Licensee, where the Licensee is one person and the Licensee has not

nominated anybody for such approval.



4A.



-



Amendments to the Work Programme



(1) This clause applies to any amendment to be made to the content of the Work



Programme (including to the deadline for taking an action).



(2) At any time not later than three months before the deadline for taking an action in

the Work Programme the Licensee may give notice in writing to the OGA that the



Licensee desires an amendment regarding that action, and the notice shall describe

the proposed amendment.

(3) The OGA may in its discretion permit a shorter notice period than the period of

three months specified in paragraph (2).

(4) Where notice is given, the OGA may in its discretion direct in writing that the Work



Programme be amended as proposed.



Surrender during Initial Term

5. -(1) This clause shall apply where an Early Surrender Area and an Early Surrender



Period are specified.



(2) No later than one month before the expiry of the Early Surrender Period, the

Licensee may give notice in writing to the OGA indicating(a) that he will determine this licence in relation to a part of the Licensed Area

which, when taken together with any one or more areas previously

surrendered in accordance with clause 10, is no less than the Early

Surrender Area; and

(b) the date no later than the expiry of the Early Surrender Period on which

the surrender of that part of the Licensed Area shall take effect.

(3) This licence shall automatically cease and determine on the expiry of the Early

Surrender Period unless(a) the Licensee has given notice in accordance with paragraph (2); or

(b) at the request of the Licensee, the OGA has directed that the licence shall

continue without such notice having been given.



Option to continue licence into a Second Term

6. -(1) At any time not later than one month before the expiry of Phase C of the Initial

Term, or such shorter notice period as the OGA in its discretion may permit, the

Licensee may(a) subject to payment of the sums specified in Schedule 2 and to

performance of the terms and conditions contained in this licence including,

without limitation, those conditions set out in paragraph (3) of this clause; and



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(b) conditional upon due performance by the Licensee of the Work

Programme before the expiry of Phase C of the Initial Term,



give notice in writing to the OGA in the manner hereinafter provided that he desires

this licence to continue in force in relation to part of the Licensed Area ("the

Continuing Part").

(2) Where the Licensee gives notice to the OGA in accordance with paragraph (1) of

this clause such notice must indicate that he will determine this licence in relation to

such part of the Licensed Area as shall be described by the Licensee in the notice

("the Surrendered Part") in accordance with the requirements of paragraph (3) of this



clause.



(3) Subject to paragraph (4) of this clause, the Surrendered Part must consist in an

area which, when taken together with any one or more areas previously surrendered,

is no less than the Mandatory Surrender Area.



(4) The Licensee shall not be obliged to surrender so much of the Licensed Area that

following such surrender the Licensed Area comprises less than thirty Sections.

(5) Any notice served in accordance with paragraph (1) of this clause shall specify a

date not later than the expiry of Phase C of the Initial Term on which the Surrendered

Part is to be surrendered.

(6) This licence shall upon the option conferred by this clause being duly exercised

but subject to the provisions of clause 3 of this licence continue in respect of the



Continuing Part for the Second Term.



Extension of the Initial or Second Term

7. -(1) This clause applies to an extension to be made to Phase A or, as the case

may be, to Phase B or Phase C of the Initial Term or to the Second Term ("the

relevant phase or term").

(2) At any time not later than three months before the expiry of the relevant phase or

term, or such shorter notice period as the OGA in its discretion permit, the Licensee

may, subject to the payment of the sums specified in Schedule 2 and to performance

of the terms and conditions herein contained, give notice in writing to the OGA that

the Licensee desires that phase or term to be extended for a further period.

(3) Where such notice is given, the OGA may in its discretion direct in writing that the

relevant phase or term be extended; and paragraph (2) of this clause shall apply to



that phase or term as extended.



(4) Any extension shall be for a period, and subject to such conditions,



as the OGA



may determine.



(5) Where



Phase C of the Initial Term or where the Second Term is extended, clause

respect of the Initial Term or the Second Term as extended.



3 shall apply in



Phase A or Phase B of the Initial Term is extended by a period, the

subsequent phase of the Initial Term shall (without prejudice to paragraph (2)) be

reduced by the same amount.

(6) Where



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(7) Where Phase C of the Initial Term is extended by a period, the Second Term shall

(without prejudice to paragraph (2)) be reduced by the same amount.

(8) Where the Second Term is extended by a period, the Third Term shall be reduced

by the same amount.



Option to continue the Licence into a Third Term

8. -(1) At any time not later than three months before the expiry of the Second Term,

or such shorter notice period as the OGA may in its discretion permit, the Licensee

may, subject to payment of those sums specified in Schedule 2 and to performance

of the terms and conditions herein contained, give notice in writing to the OGA that

he desires this licence to continue as to a part of the Licensed Area ("the Producing

Part").

(2) Such notice shall describe the Producing Part, which shall be an area that

comprises no Section that is not wholly or in part the subject of a consent, approval

or programme described in paragraph (3) of this clause.



such notice is given this licence shall continue in force after the expiry of the

Second Term as provided by the following paragraphs of this clause in the event that

before such expiry(a) the OGA has given a consent in pursuance of clause 17(1) of this licence

and such consent is still in force upon expiry of the Second Term; or

(b) the OGA has in pursuance of clause 17( 4) of this licence approved a

programme submitted to it in pursuance of clause 17(2) and such approval is

still in force upon expiry of the Second Term; or

(c) the OGA has served a programme on the Licensee in pursuance of

clause 17(6) of this licence and such programme is still in force upon expiry

of the Second Term.

(3)



If



(4) Where this licence continues in force by virtue of this clause it shall, subject to the

provisions of clause 3 of this licence, so continue during the Third Term.



Power further to extend term of Licence

9. -(1) Where this Licence is continued in force by virtue of clause 8 of this Licence to

the end of the Third Term, the OGA, on application being made to it in writing not

later than three months before the expiry of such period, may in its discretion agree

with the Licensee that this Licence shall continue in force thereafter for such further

period as the OGA and the Licensee may agree and subject to such modification of

the terms and conditions of this licence (which modification may include making

provision for any further extension of the term of this licence) as the OGA and the

Licensee may then agree is appropriate.

(2) The OGA may in its discretion accept an application for extension of this licence

made less than three months before the expiry of the Third Term.



Right of Licensee to determine Licence or surrender part of Licensed Area

10. Without prejudice to any obligation or liability imposed by or incurred under the

terms hereof the Licensee may at any time by giving to the OGA not less than one



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Licence P2503



month's notice in writing to that effect determine this licence or surrender any part of

the Licensed Area being a part which complies with clause 11 hereof.



Areas surrendered

11. -( 1) Any area surrendered by the Licensee pursuant to clause 5, 6 or 10 of this

licence and any area accordingly retained by him shall, unless the OGA has

otherwise agreed in writing before the date on which the appropriate notice is given

by the Licensee to the OGA

(a) be bounded by minute lines of latitude extending not less than two

minutes of longitude and minute lines of longitude extending not less than

two minutes of latitude;

(b) consist of not less than thirty Sections; and

(c) subject always to paragraph (2) of this clause have boundaries which,

whether they run north and south or east and west, either coincide with the

corresponding boundaries of the Block or are not less than two Sections

distant from those boundaries.



-



(2) The surrender by the Licensee of any area pursuant to clause 5, 6 or 10 of this

licence shall not, unless the OGA has otherwise agreed in writing before the date on

which the appropriate notice is given by the Licensee to the OGA, result in the

creation of a Fragmented Licensed Area.

(3) Upon the date on which any determination of this licence or any surrender of part

of the Licensed Area in the manner provided for by any clause of this licence is to

take effect the rights granted by this licence shall cease in respect of the Licensed

Area or of the part so surrendered as the case may be but without prejudice to any

obligation or liability imposed upon the Licensee or incurred by him under the terms

of this licence prior to that date.



Payment of consideration for Licence

12. -(1) The Licensee shall make to the OGA as consideration for the grant of this

Licence payments in accordance with Schedule 2 to this Licence.

(2) The Licensee shall not by reason of determination of this Licence or surrender of

any part of the Licensed Area be entitled to be repaid or allowed any sum payable to

the OGA pursuant to this licence before the date of determination or surrender.



Provision of contact details to OGA

13. -(1) A notice, direction or other document authorised or required (in whatever

terms) to be given to the Licensee by virtue of this licence is treated as given to the

Licensee if it is given to the person specified by the Licensee under paragraph (2) at



the address so specified.



(2) The Licensee must supply the OGA with the name and address of a person to

whom notices, directions and other documents are to be given.

(3) The Licensee must ensure that, where there is a change in the person to whom,

or the address to which, information should be sent in accordance with paragraph (2),

the OGA is notified of the change as soon as is reasonably practicable.



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(4) If the Licensee fails to comply with paragraph (2) the OGA may give the Licensee

a notice which( a) requires the Licensee to comply with paragraph (2) within the period of 30

days beginning with the date of the notice; and

(b) states that, if the Licensee fails to do so, the Licensee will be treated as

having supplied under paragraph (2) the name and address specified by the

OGA in the notice.



Measurement of Petroleum obtained from the Licensed Area

14. -(1) The Licensee shall measure or weigh by a method or methods customarily

used in good oilfield practice and from time to time approved by the OGA all

Petroleum won and saved from the Licensed Area.

(2) If and to the extent that the OGA so directs, the duty imposed by paragraph (1) of

this clause shall be discharged separately in relation to Petroleum won and saved(a) from each part of the Licensed Area which is an Oil Field for the purposes

of the Oil Taxation Act 1975;

(b) from each part of the Licensed Area which forms part of such an Oil Field

extending beyond the Licensed Area; and

(c) from each Well producing Petroleum from a part of the Licensed Area

which is not within such an Oil Field.



(3) If and to the extent that the OGA so directs, the preceding provisions of this

clause shall apply as if the duty to measure or weigh Petroleum included a duty to

ascertain its quality or composition or both; and where a direction under this

paragraph is in force, the following provisions of this clause shall have effect as if

references to measuring or weighing included references to ascertaining quality or



composition.

(4) The Licensee shall not make any alteration in the method or methods of

measuring or weighing used by him or in any appliances used for that purpose

without the consent in writing of the OGA and the OGA may in any case require that

no alteration shall be made save in the presence of a person authorised by the OGA.

(5) The OGA may from time to time direct that any weighing or measuring appliance

shall be tested or examined in such manner, upon such occasions or at such

intervals and by such persons as may be specified by the OGA's direction.

(6) If any measuring or weighing appliance shall upon any such test or examination

as is mentioned in paragraph (5) of this clause be found to be false or unjust the

same shall if the OGA so determines after considering any representations in writing

made by the Licensee be deemed to have existed in that condition during the period

since the last occasion upon which the same was tested or examined pursuant to

paragraph (5) of this clause.



Keeping of accounts

15. -( 1) The Licensee shall keep within the United Kingdom full and correct accounts

a form from time to time approved by the OGA of(a) the quantity of Petroleum in the form of gas won and saved;

(b) the quantity of Petroleum in any other form won and saved;

(c) the name and address of any person to whom any Petroleum has been



in



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Licence P2503

supplied by the Licensee, the quantity so supplied, the price thereof or other

consideration therefor and the place to which the Petroleum was conveyed

pursuant to the agreement for such supply; and

(d) such other particulars as the OGA may from time to time direct.

(2) The quantities of Petroleum stated in such accounts may exclude any water

separated from the Petroleum and shall be expressed as volumes in cubic metres

measured at, or calculated as if measured at, a temperature of 15° Celsius and a

pressure of 1.0132 bar but if the OGA serves notice in writing on the Licensee

determining any other manner in which any quantity of Petroleum or any quantity of

any form of Petroleum is to be expressed that quantity shall be so expressed.

(3) Such accounts shall state separately the quantities of petroleum used for the

purposes of carrying on drilling and production operations and pumping to field

storage, and quantities not so used, and in the case of Petroleum not in the form of



gas shall state the specific gravity of the Petroleum and, if Petroleum of different

specific gravities has been won and saved, the respective quantities of Petroleum of

each specific gravity.



(4) The Licensee shall within two months after the end of each Half Year in which this

licence is in force and within two months after the expiration or determination of this

licence deliver to the OGA an abstract in a form from time to time approved by the

OGA of the accounts for that Half Year or for the period prior to such expiration or



determination as the case may be.



Working obligations

16. -(1) The Licensee shall before the expiry of Phase C of the Initial Term carry out

the Work Programme.

(2) If at any time the OGA serves a notice in writing on the Licensee requiring him to

submit to the OGA, before a date specified in the notice, an appropriate programme

for exploring for Petroleum in the Licensed Area during a period so specified, the

Licensee shall comply with the notice; and for the purposes of this paragraph an

appropriate programme is one which any person who, if he(a) were entitled to exploit the rights granted by this licence; and

(b) had the competence and resources needed to exploit those rights to the

best commercial advantage; and

(c) were seeking to exploit those rights to the best commercial advantage,



could reasonably be expected to carry out during the period specified

and that period must be within the term of this licence.



in



the notice,



(3) If a programme is submitted to the OGA in consequence of a notice served by

pursuance of paragraph (2) of this clause, then-



it in



shall not be entitled to revoke this licence on the ground that the

programme does not satisfy the requirements of that paragraph ("the

Relevant Requirements"); but

(b) if it is of the opinion that the programme does not satisfy the Relevant

Requirements it may serve a notice in writing on the Licensee stating its

opinion and the reasons for it.

(a)



it



(4) Where notice in



respect of a programme is served on the Licensee

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pursuance



Licence P2503



®



of paragraph (3) of this clause the Licensee shall either(a) within 28 days beginning with the date of service of the notice refer to

arbitration, in the manner provided by clause 43 of this licence, the question

whether the programme satisfies the Relevant Requirements; or

(b) within a reasonable period beginning with the date of service of such

notice submit to the OGA a further programme which satisfies the Relevant



Requirements,



and where it is determined in consequence of any reference to arbitration in

pursuance of sub-paragraph (a) of this paragraph that the programme in question

does not satisfy the Relevant Requirements the Licensee shall submit to the OGA, as

soon as possible after the date of the determination, a further programme which

satisfies the Relevant Requirements.

(5) The Licensee shall carry out any programme submitted by him in pursuance of

this clause as to which either(a) the OGA serves notice in writing on the Licensee stating that the OGA

approves the programme; or

(b) it is determined in consequence of any reference to arbitration in the

manner provided by clause 43 of this licence that the programme satisfies the

Relevant Requirements,



and any programme approved by the OGA in pursuance of this paragraph shall be

deemed for the purposes of this licence to satisfy the Relevant Requirements.

(6) Where, in consequence of any breach or non-observance by the Licensee of any

provision of paragraph (2), (4) or (5) of this clause, the OGA has power by virtue of

paragraph (1) of clause 41 of this licence to revoke this licence, it may if it thinks fit

exercise that power in relation to such part only of the Licensed Area as it may

specify; and where it does so the rights granted by this licence shall cease in respect

of the specified part of that area without prejudice to any obligation or liability

imposed upon the Licensee or incurred by him under the terms of this licence.

(7) Where the Licensee has a duty by virtue of this clause to carry out a programme

during a part of the term of this licence, the OGA may serve notice in pursuance of

paragraph (2) of this clause in respect of another part of that term.



Development and production programmes

17.-(1) The Licensee shall not(a) erect or carry out any Relevant Works, either in the Licensed Area or

elsewhere, for the purpose of getting Petroleum from that area or for the

purpose of conveying to a place on land Petroleum got from that area; or

(b) get Petroleum from that area otherwise than in the course of searching for

Petroleum or drilling Wells,



except with the consent in writing of the OGA or in accordance with a programme

which the OGA has approved or served on the Licensee in pursuance of the

following provisions of this clause.

(2) The Licensee shall prepare and submit to the OGA, in such form and by such

time and in respect of such period during the term of this licence as the OGA may

direct, a programme specifying-



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(a) the Relevant Works which the Licensee proposes to erect or carry out

during that period for either of the purposes mentioned in paragraph (1 )(a) of

this clause;

(b) the proposed locations of the works, the purposes for which it is proposed

to use the works and the times at which it is proposed to begin and to

complete the erection or carrying out of the works;

(c) the maximum and minimum quantities of Petroleum in the form of gas and

the maximum and minimum quantities of Petroleum in other forms which(i) in each calendar year; or

(ii) in each such period of more or less than one calendar year as

may be specified by the OGA,

the Licensee proposes to get as mentioned in paragraph (1)(b) of this clause.

(3)



If



the OGA directs the Licensee(a) to prepare different programmes in pursuance of paragraph (2) of this

clause in respect of Petroleum from such different parts of the Licensed Area

as are specified in the direction; or

(b) where a programme approved or served in pursuance of this clause

relates to a particular period during the term of this licence, to prepare a

programme or programmes in pursuance of paragraph (2) of this clause in

respect of a further period or further periods during that term,



the Licensee shall comply with the direction.

shall be the duty of the OGA expeditiously to consider any programme

submitted to it in pursuance of paragraph (2) of this clause and when it has done so

to give notice in writing to the Licensee stating( a) that the OGA approves the programme; or

(b) that the OGA approves the programme subject to the condition that such

of the Relevant Works as are specified in the notice shall not be used before

the expiration of the period so specified in relation to the works or shall not be

used without the consent in writing of the OGA; or

(c) that the OGA rejects the programme on one or both of the following

grounds, namely(i) that the carrying out of any proposals included in the programme in

pursuance of paragraph (2) of this clause would be contrary to good

oilfield practice;

(ii) that the proposals included in the programme in pursuance of the

sub-paragraph (c) of the said paragraph (2) are, in the opinion of the

OGA, not in the national interest,

(4)



It



and a notice in pursuance of sub-paragraph (b) of this paragraph may contain

different conditions in respect of different works but shall not be given unless the

OGA is satisfied that the condition mentioned in the notice is required in the national

interest.

(5) Where the OGA gives notice of rejection of a programme in pursuance of

sub-paragraph (c) of paragraph (4) of this clause, then-



the grounds of the rejection consist of or include the ground mentioned

in paragraph (i) of that sub-paragraph it shall include in the notice a

statement of the matters in consequence of which it rejected the programme

on that ground; and

(b) if the grounds of the rejection consist of or include the ground mentioned

(a)



if



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paragraph (ii) of that sub-paragraph it shall include in the notice a

statement of the rates at which it considers that, in the national interest,

Petroleum should be got from the area to which the programme relates; and

(c) the Licensee shall prepare and submit to the OGA before the time

specified in the notice(i) where the notice contains such a statement as is mentioned in

sub-paragraph (a) above, modifications of the programme which

ensure that the carrying out of the programme with those

modifications would not be contrary to good oilfield practice;

(ii) where the notice contains such a statement as is mentioned in

sub-paragraph (b) above, modifications of the programme which

ensure the getting of Petroleum from the area to which the

programme relates at the rates specified in the statement and which

(except so far as may be necessary in order to get Petroleum at

those rates) are not such that the carrying out of the programme with

those modifications would be contrary to good oilfield practice,

but the Licensee shall not be required by virtue of paragraph (i) of this

sub-paragraph to submit modifications if it is determined in consequence of

any reference to arbitration in the manner provided by clause 43 of this

licence that the carrying out of the programme without modifications would

not be contrary to good oilfield practice.

in



If the OGA gives notice in writing to the Licensee that the OGA approves the

modifications of a programme which have been submitted to it in pursuance of

sub-paragraph (c) of paragraph (5) of this clause, the programme with those

modifications shall be deemed to be approved by the OGA; but if the Licensee fails to

perform the duty imposed on him by that sub-paragraph the OGA may, if it thinks fit,

instead of revoking this licence in consequence of the failure, serve on the Licensee

such a programme as the OGA considers that the Licensee should have submitted to

it in respect of the area and period to which the rejected programme related.



(6)



(7) Where the OGA



proposes to approve a programme subject to a condition in

pursuance of paragraph (4)(b) of this clause or to reject a programme in pursuance of

paragraph (4)(c) of this clause or to serve a programme on the Licensee in

pursuance of paragraph (6) of this clause it shall before doing so(a) give the Licensee particulars of the proposal and an opportunity to make

representations to the OGA about the technical and financial factors which

the Licensee considers are relevant in connection with the proposal; and

(b) consider any such representations then made to it by the Licensee.

(8) The Licensee shall carry out any programme approved or served on him by the

OGA in pursuance of this clause or, if such a programme is varied in pursuance of

clause 18 of this licence, the programme as so varied except in so far as the

Licensee is authorised in writing by the OGA to do otherwise or is required to do

otherwise by such a condition as is mentioned in paragraph (4)(b) of this clause; but

if it is necessary to carry out certain works in order to comply with provisions included

in a programme by virtue of paragraph (5)(c) of this clause or provisions of a

programme served on the Licensee in pursuance of paragraph (6) of this clause or

provisions of a programme as varied in pursuance of clause 18 of this licence, then,

notwithstanding anything in the programme as to the time when those provisions are

to be complied with, the Licensee shall not be treated as having failed to comply with

those provisions before the expiration of the period reasonably required for carrying

out the works.



Page 13 of 38



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®



(9) In this clause "Relevant Works" means any structures and any other works

whatsoever which are intended by the Licensee to be permanent and are neither

designed to be moved from place to place without major dismantling nor intended by

the Licensee to be used only for searching for Petroleum.



Provisions supplementary to clause 17

18. -(1) A consent given by the OGA in pursuance of clause 17(1) of this licence may

be given subject to such conditions as are specified in the document signifying the

consent and may in particular, without prejudice to the generality of the preceding

provisions of this paragraph, be limited to a period so specified.

(2) Where-



(a) the OGA gives notice in respect of a programme in pursuance of

paragraph (4)(a) or (b) or paragraph (6) of clause 17 of this licence or serves

a programme in pursuance of the said paragraph (6); or

(b) it is determined in consequence of any reference to arbitration in the

manner provided by clause 43 of this licence that the Licensee is not required

by virtue of paragraph (i) of clause 17(5)(c) of this licence to submit

modifications of a programme in respect of which notice of rejection

containing such a statement as is mentioned in the said paragraph (i) was

given by the OGA in pursuance of clause 17 ( 4 )(c) of this licence,



the OGA may give to the Licensee, with the notice given or the programme served as

mentioned in sub-paragraph (a) of this paragraph or, in a case falling within

sub-paragraph (b) of this paragraph, within the period of three months beginning with

the date of the arbitrator's or arbiter's determination, a notice (hereafter in this clause

referred to as a "Limitation Notice" ) authorising the OGA, by a further notice given to

the Licensee from time to time after the expiration of the period specified in the

Limitation Notice, to provide that the programme to which the Limitation Notice

relates shall have effect while the further notice is in force with the substitution for any

quantity of Petroleum or any period specified in the programme in pursuance of

clause 17(2)(c) of this licence of a different quantity of Petroleum or a different period

specified in the further notice.

(3) A quantity or period specified in such a further notice as that to be substituted for

a quantity or period which is specified in the programme in question shall be such as

to secure that the expenditure to be incurred by the Licensee in complying with the

further notice, in a case where an effect of the notice is to increase the quantity of

Petroleum which the Licensee is required to get from the Licensed Area in any

period, is less than the cost of drilling a new Well in the Licensed Area at the time

when the further notice is given.

(4) Where the OGA proposes to give a Limitation Notice or any such further notice as

aforesaid it shall before doing so(a) give the Licensee particulars of the proposal and an opportunity to make

representations to the OGA about the technical and financial factors which

the Licensee considers are relevant in connection with the proposal; and

(b) consider any such representations then made to it by the Licensee,



and the OGA shall not give such a further notice of which an effect is to increase the

quantity of Petroleum which the Licensee is required to get from the Licensed Area



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Licence P2503



®



during any period unless the OGA is satisfied that the notice is required by reason of

a national emergency and shall not give any other such further notice as aforesaid

unless it is satisfied that the notice is required in the national interest.

(5) A Limitation Notice or any such further notice as aforesaid may(a) specify any quantity or period by reference to such factors



as the OGA

thinks fit; and

(b) in the case of such a further notice, contain provisions as to(i) the date when the notice is to come into force;

(ii) the date when the notice is to cease to be in force,

and specify different dates in pursuance of this sub-paragraph for different

provisions of the notice,



and the OGA may revoke such a further notice at a particular time by serving on the

Licensee a notice in writing stating that the further notice is revoked at that time.

(6) Any question arising under clause 17 of this licence or this clause as to what is, is

not or is required in the national interest or as to what is, is not or is required by

reason of, a national emergency shall be determined by the OGA.

(7) The Licensee shall ensure that any conditions to which an approval is subject in

pursuance of clause 17(4)(b) of this licence or to which a consent is subject in

pursuance of paragraph (1) of this clause are complied with.



(8)



If in



respect of part of the Licensed Area(a) a consent has been given in pursuance of paragraph (1) of clause 17 of



this licence; or

(b) the Licensee has submitted to the OGA, in accordance with a direction

given by virtue of paragraph (3)(a) of that clause, a programme in pursuance

of paragraph (2) of that clause(i) as respects which the OGA has served notice in pursuance of

paragraph (4)(a) or (b) or paragraph (6) of that clause; or

(ii) in consequence of which the OGA has served a programme on

the Licensee in pursuance of the said paragraph (6); or

(iii) in respect of which it has been determined in consequence of any

reference to arbitration in the manner provided by clause 43 of this

licence that the Licensee is not required by virtue of paragraph

(5)(c)(i) of that clause to submit modifications,



paragraph (1) of clause 41 of this licence shall not authorise the OGA to revoke this

licence in relation to that part of the Licensed Area in consequence of any breach or

non-observance, while the consent is in force or during the period to which the

programme relates, of any provision of the said clause 17 in connection with a

different part of the Licensed Area.

(9) Where in consequence of any breach or non-observance by the Licensee of any

provision of clause 17 of this licence the OGA has power by virtue of paragraph (1) of

clause 41 of this licence to revoke this licence or, in consequence of paragraph (8) of

this clause, to revoke it in respect of part only of the Licensed Area, it may if it thinks

fit-



case where it has power to revoke this licence, exercise the power in

relation to such part only of the Licensed Area as it may specify; and

(b) in a case where by virtue of the said paragraph (8) it has power to revoke

( a)



in a



Page 15 of 38



Licence P2503

it in respect of part only of the Licensed Area, exercise the power in relation

to such portion only of that part as it may specify,



and where in consequence of the said paragraph (8) or by virtue of the preceding

provisions of this paragraph the OGA revokes this licence in respect of a part or

portion of the Licensed Area, the rights granted by this licence shall cease in respect

of that part or portion without prejudice to any obligation or liability imposed upon the

Licensee or incurred by him under the terms of this licence.



Commencement and abandonment and plugging of Wells

19. -(1) The Licensee shall not commence or recommence the drilling of any Well

without the consent in writing of the OGA.

(2) Subject to paragraph (6), the Licensee shall not abandon any Well without the

consent in writing of the OGA.

(3) The Licensee shall ensure compliance with any conditions subject to which any

consent under either of the foregoing paragraphs is given.

(4) If any such condition under paragraph (1) of this clause relates to the position,

depth or direction of the Well, or to any casing of the Well or if any condition under

either paragraph (1) or paragraph (2) of this clause relates to any plugging or

abandoning of the Well, the OGA may from time to time direct that the Well and all



records relating thereto shall be examined in such manner, upon such occasions or

at such intervals and by such person as may be specified by the OGA's direction and

the Licensee shall pay to any such person or to the OGA such fees and expenses for

such examination as the OGA may specify.

(5) The plugging of any Well shall be done in accordance with a specification

approved by the OGA applicable to that Well or to Wells generally or to a class of

Wells to which that Well belongs and shall be carried out. in an efficient and



workmanlike manner.



(6) The OGA may at any time give the Licensee a notice requiring a well drilled

pursuant to this licence to be plugged and abandoned in accordance with paragraph

(5) within the period specified in the notice (but this paragraph is subject to

paragraphs (8) and (9)).

(7) The Licensee shall comply with any notice under paragraph (6).

(8) A notice under paragraph (6) may not be given less than one month before the

expiry or determination of the Licensee's rights under this licence in relation to the

area, or the part of the area, in which the well is drilled.

(9) A notice under paragraph (6) may be given only in relation to a well from which

the Licensee has not extracted any petroleum within the period of one month ending

with the day on which the notice is given.



(10) Subject to paragraphs (6) to (7) and (11) and (12) of this clause, any Well drilled

by the Licensee pursuant to this licence shall be plugged and abandoned in

accordance with paragraphs (2), (3), (4) and (5) of this clause, not less than one

month before the expiry or determination of the Licensee's rights in respect of the



Page 16 of 38



Licence P2503



area or part thereof in which that Well is drilled.

(11) A direction by the OGA may be given by notice in writing to the Licensee not less

than one month before the Licensee's rights in respect of the area or part thereof in

which the Well is situate expire or determine so as to relieve the Licensee of the

obligation imposed by paragraph ( 10) of this clause to plug and abandon the Well.



(12) Where the OGA revokes this licence, any Well drilled by the Licensee pursuant

to this licence shall(a) be plugged and abandoned in accordance with paragraphs (2), (3), (4)

and (5) of this clause, as soon as reasonably practicable; or

(b) if the Minister so directs at the time of revocation, be left in good order

and fit for further working together with all casings and any Well head fixtures

the removal whereof would cause damage to such Wells.

(13) Any well that, pursuant to a direction by the OGA under paragraph (11) of this

clause, has not been plugged and abandoned, shall be left in good order and fit for

further working together with all casings and any Well head fixtures the removal

whereof would cause damage to such wells.

( 14) All casings and fixtures forming part of a Well and left in position at the expiry or

determination (whether by revocation or otherwise) of the Licensee's rights in respect

of the area or part thereof in which that Well is drilled, or at the completion of any

works required of the Licensee under paragraph (12) of this clause (whichever is the

later), shall be the property of the OGA.



Distance of Wells from boundaries of Licensed Area

20. No Well shall except with the consent in writing of the OGA be drilled or made so

that any part thereof is less than one hundred and twenty-five metres from any of the

boundaries of the Licensed Area.



Control of Development Wells



21.-(1) The Licensee shall not suspend work on the drilling of a Development Well,

or having suspended it in accordance with this paragraph shall not begin it again,

except with the consent in writing of the OGA and in accordance with the conditions,

if any, subject to which the consent is given.

(2) When work on the drilling of a Development Well is suspended in accordance with

paragraph (1) of this clause, the Licensee shall forthwith furnish the OGA with such

information relating to the Well as the OGA may specify.

(3) The Licensee-



(a) shall not do any Completion Work in respect of a Well in the Licensed

Area except in accordance with a programme of Completion Work approved

by the OGA in respect of the Well;

(b) shall furnish to the OGA, in accordance with the provisions of such a

programme, particulars of any Completion Work done by him in respect of a

Well in the Licensed Area; and

(c) shall not remove or alter any casing or equipment installed by way of

Completion Work in respect of a Well except with the consent in writing of the

OGA and in accordance with the conditions, if any, subject to which the



Page 17 of 38



Licence P2503



®

consent is given.

(4) In this clause-



"Completion Work", in relation to a Well, means work, by way of the

installation of a casing or equipment or otherwise after the Well has been

drilled, for the purpose of bringing the Well into use as a Development Well;

and

"Development Well" means a Well which the Licensee uses or intends to use

in connection with the getting of Petroleum in the Licensed Area, other than a

Well which for the time being he uses or intends to use only for searching for

Petroleum.



Provision of storage tanks, pipes, pipelines or other receptacles

22. The Licensee shall use methods and practice customarily used in good oilfield

practice for confining the Petroleum obtained from the Licensed Area in tanks,

gasholders, pipes, pipe-lines or other receptacles constructed for that purpose.



Avoidance of harmful methods of working

23. -(1) The Licensee shall maintain all apparatus and appliances and all Wells in the

Licensed Area which have not been abandoned and plugged as provided by clause

19 of this licence in good repair and condition and shall execute all operations in or in

connection with the Licensed Area in a proper and workmanlike manner in

accordance with methods and practice customarily used in good oilfield practice and

without prejudice to the generality of the foregoing provision the Licensee shall take

all steps practicable in order(a) to control the flow and to prevent the escape or waste of Petroleum

discovered in or obtained from the Licensed Area;

(b) to conserve the Licensed Area for productive operations;

(c) to prevent damage to adjoining Petroleum-bearing strata;

(d) to prevent the entrance of water through Wells to Petroleum-bearing

strata except for the purposes of secondary recovery; and

(e) to prevent the escape of Petroleum into any waters in or in the vicinity of

the Licensed Area.

(2) The Licensee shall comply with any instructions from time to time given by the

Minister or the OGA in writing relating to any of the matters set out in the foregoing

paragraph. If the Licensee objects to any such instruction on the ground that it is

unreasonable he may, within fourteen days from the date upon which the same was

given, refer the matter to arbitration in manner provided by clause 43 of this licence.

(3) Notwithstanding anything in the preceding provisions of this clause, the Licensee

shall not(a) flare any gas from the Licensed Area; or

(b) use gas for the purpose of creating or increasing the pressure by means

of which Petroleum is obtained from that area,



except with the consent

if any, of the consent.



in writing



of the OGA and in accordance with the conditions,



(4) An application for consent in pursuance of paragraph (3) of this clause must be

in writing to the OGA and must specify the date on which the Licensee



made



Page 18 of 38



Licence P2503



proposes to begin the flaring or use in question; and subject to paragraph (5) of this

clause that date must not be before the expiration of the period of two years

beginning with the date when the OGA receives the application.

the OGA gives notice in writing to the Licensee stating that, in consequence of

plans made by the Licensee which the OGA considers are reasonable, the OGA will

entertain an application for consent in pursuance of paragraph (3) of this clause

which notice specifies a date after the expiration of a period mentioned in the notice

which is shorter than the period mentioned in paragraph (4) of this clause, an

application made in consequence of the notice may specify, as the date on which the

applicant proposes to begin the flaring or use in question, a date after the expiration

of that shorter period.

(5)



If



(6) Before deciding to withhold consent or to grant it subject to conditions in

pursuance of paragraph (3) of this clause, the OGA shall give the Licensee an

opportunity to make representations in writing to the OGA about the technical and

financial factors which the Licensee considers are relevant in connection with the

case and shall consider any such representations then made to it by the Licensee.



(7) Consent in pursuance of paragraph (3) of this clause shall not be required for any

flaring which, in consequence of an event which the Licensee did not foresee in time

to deal with it otherwise than by flaring, is necessary in order(a) to remove or reduce the risk of injury to persons in the vicinity of the Well

in question; or

(b) to maintain a flow of Petroleum from that or any other Well,



but when the Licensee does any flaring which is necessary as aforesaid he shall

forthwith inform the OGA that he has done it and shall, in the case of flaring to

maintain a flow of Petroleum, stop that flaring upon being directed by the OGA to do



so.



(8) The Licensee shall give notice to the OGA of any event causing the escape or

waste of Petroleum, damage to Petroleum-bearing strata or the entrance of water

through Wells to Petroleum-bearing strata except for the purposes of secondary

recovery forthwith after the occurrence of that event and shall, forthwith after the

occurrence of any event causing the escape of Petroleum into the sea, give notice of

the event to the Chief Inspector of Her Majesty's Coastguard.

(9) The Licensee shall comply with any reasonable instructions from time to time

given by the OGA with a view to ensuring that funds are available to discharge any

liability for damage attributable to the release or escape of Petroleum in the course of

activities connected with the exercise of rights granted by this licence; but where the

OGA proposes to give such instructions it shall before giving them( a) give the Licensee particulars of the proposal and an opportunity to make

representations to the OGA about the proposal; and

(b) consider any representations then made to it by the Licensee about the



proposal.



Appointment of operators

24. -(1) The Licensee shall ensure that another person (including, in the case where

the Licensee is two or more persons, any of those persons) does not exercise any

function of organising or supervising all or any of the operations of searching or



Page 19 of 38



Licence P2503



®



boring for or getting Petroleum in pursuance of this licence unless that other person

is a person approved in writing by the OGA and the function in question is one to



which that approval relates.



(2) The OGA shall not refuse to give its approval of a person in pursuance of

paragraph (1) of this clause if that person is competent to exercise the function in

question, but where an approved person is no longer competent to exercise that

function the OGA may, by notice in writing given to the Licensee, revoke its approval.



Fishing and navigation

25. The Licensee shall not carry out any operations authorised by this licence in or

about the Licensed Area in such manner as to interfere unjustifiably with navigation

or fishing in the waters of the Licensed Area or with the conservation of the living

resources of the sea.



Training

26. -(1) The Minister or the OGA may from time to time give to the Licensee

instructions in writing as to the training of persons employed or to be employed,

whether by the Licensee or by any other person, in any activity which is related to the

exercise of the rights granted by this licence and the Licensee shall ensure that any

instructions so given are complied with.

(2) The Minister or the OGA shall not give instructions in pursuance of paragraph (1)

of this clause unless the Minister or the OGA (as applicable) has consulted as to the

provisions proposed to be included in such instructions the Petroleum Industry

Training Board or such other body of a like nature as may from time to time be

carrying on activities of a substantially similar kind to those at present performed by

the said Board.



(3) The Licensee shall furnish the Minister or the OGA with such information relating

to the training of persons referred to in paragraph (1) of this clause as the Minister or

the OGA may from time to time request.



Unit development

27. -(1) If at any time at which this licence is in force the OGA shall be satisfied that

the strata in the Licensed Area or any part thereof form part of a single geological

Petroleum structure or Petroleum field (hereinafter referred to as "an Oil Field") other

parts whereof are formed by strata in areas in respect of which other licences granted

in pursuance of the Act are then in force and the OGA shall consider that it is in the

national interest in order to secure the maximum ultimate recovery of Petroleum and

in order to avoid unnecessary competitive drilling that the Oil Field should be worked

and developed as a unit in co-operation by all persons including the Licensee whose

licences extend to or include any part thereof the following provisions of this clause

shall apply.

(2) Upon being so required by notice in writing by the OGA the Licensee shall

co-operate with such other persons, being persons holding licences under the Act in

respect of any part or parts of the Oil Field (hereinafter referred to as "the other

Licensees") as may be specified in the said notice in the preparation of a scheme

(hereinafter referred to as "a Development Scheme") for the working and



Page 20 of 38



Licence P2503



development of the Oil Field as a unit by the Licensee and the other Licensees in

co-operation, and shall, jointly with the other Licensees, submit such scheme for the

approval of the OGA.

(3) The said notice shall also contain or refer to a description of the area or areas in

respect of which the OGA requires a Development Scheme to be submitted and shall

state the period within which such scheme is to be submitted for approval by the

OGA.

(4) If a Development Scheme is not submitted to the OGA within the period so stated

or if a Development Scheme so submitted is not approved by the OGA, the OGA may

itself prepare a Development Scheme which shall be fair and equitable to the

Licensee and all other Licensees, and the Licensee shall perform and observe all the

terms and conditions thereof.

(5) If the Licensee objects to any such Development Scheme prepared by the OGA

he may within 28 days from the date on which notice in writing of the said scheme

shall have been given to him by the OGA refer the matter to arbitration in the manner

provided by clause 43 of this licence.



(6) Any such Development Scheme or the award of any arbitrator or arbiter in relation

thereto shall have regard to any direction pursuant to clause 28 of this licence in

force at the date of such scheme.



Directions as to Oil Fields across boundaries

28. -(1) Where the OGA is satisfied that any strata in the Licensed Area or any part

thereof form part of an Oil Field, other parts whereof are in an area to which the

OGA's powers to grant licences pursuant to the Act do not apply and the OGA is

satisfied that it is expedient that the Oil Field should be worked and developed as a

unit in co-operation by the Licensee and all other persons having an interest in any

part of the Oil Field, the OGA may from time to time by notice in writing give to the

Licensee such directions as the OGA may think fit, as to the manner in which the

rights conferred by this licence shall be exercised.

(2) The Licensee shall observe and perform all such requirements in relation to the



Licensed Area as may be specified



in



any such direction.



(3) Any such direction may add to, vary or revoke the provisions of a Development



Scheme.



Licensee to keep records

29. -(1) The Licensee shall keep accurate records in a form from time to time

approved by the OGA of the drilling, deepening, plugging or abandonment of all

Wells and of any alterations in the casing thereof. Such records shall contain

particulars of the following matters( a) the site of and number assigned to every Well;

(b) the subsoil and strata through which the Well was drilled;

(c) the casing inserted in any Well and any alteration to such casing;

(d) any Petroleum, water, mines or workable seams of coal encountered in

the course of such activities; and

(e) such other matters as the OGA may from time to time direct.



Page



21 of 38



Licence P2503

(2) The Licensee shall keep within the United Kingdom accurate geological plans and



maps relating to the Licensed Area and such other records in relation thereto as may

be necessary to preserve all information which the Licensee has about the geology of

the Licensed Area.

(3) The Licensee shall deliver copies of the said records, plans and maps referred to

the two foregoing paragraphs to the OGA when requested to do so either(a) within any time limit specified in the request; or

(b) if there is no time limit specified, within four weeks of the request.



in



Returns

30. -(1) The Licensee shall furnish to the OGA on the first anniversary of the Start

Date, and at intervals of three months thereafter during the period in which this

licence is in force, a return in a form from time to time approved by the OGA of the

progress of his operations in the Licensed Area. Such return shall contain(a) a statement of all geological work, including surveys and tests, which has

been carried out and the areas in which and the persons by whom the work

has been carried out and the results thereof;

(b) the number assigned to each Well, and in the case of any Well the drilling

of which was begun or the number of which has been changed during such

period of three months, the site thereof;

(c) a statement of the depth drilled in each Well;

(d) a statement of any Petroleum, water, mines or workable seams of coal or

other minerals encountered in the course of the said operations; and

(e) a statement of all Petroleum won and saved.

(2) Within two months after the end of each calendar year which falls wholly or partly

within the period in which this licence is in force and within two months after the

expiration or determination of this licence or any renewal thereof the Licensee shall

furnish to the OGA an annual return in a form from time to time approved by the OGA

of the operations conducted in the Licensed Area during that year or the period prior

to such expiration or determination as the case may be together with a plan upon a

scale approved by the OGA showing the situation of all Wells. The Licensee shall

also indicate on the said plan all development and other works executed by him in

connection with searching, boring for or getting Petroleum.

(3) The Licensee shall furnish the OGA with such information as the OGA may from

time to time request about any aspect of activities of the Licensee which are

attributable directly or indirectly to the grant of this licence, except that the Licensee

shall not by virtue of this paragraph be required to furnish information in respect of his

activities in connection with any crude oil after he has appropriated it for refining by



him.

(3A) The functions of the OGA under paragraph (3) shall be exercisable concurrently

by the Chancellor of the Exchequer.



(4) The Licensee shall comply with any request for information made in accordance

with paragraph (3) above either(a) within any time limit specified in the request; or

(b) if there is no time limit specified, within four weeks of the request.



Page 22 of 38



Licence P2503



®

Licensee to keep samples



31. -(1) As far as reasonably practicable the Licensee shall correctly label and

preserve for reference for a period of five years samples of the sea bed and of the

strata encountered in any Well and samples of any Petroleum or water discovered in

any Well in the Licensed Area.

(2) The Licensee shall not dispose of any sample after the expiry of the said period of

five years unless-



(a) he has at least six months before the date of the disposal given notice in

writing to the OGA of his intention to dispose of the same; and

(b) the OGA has not within the said period of six months informed the

Licensee in writing that it wishes the sample to be delivered to it.



(3) The OGA shall be entitled at any time(a) to inform the Licensee in writing that it wishes the whole or any part of any

sample preserved by the Licensee to be delivered to it; or

(b) to inspect and analyse any sample preserved by the Licensee.

(4) The Licensee shall forthwith comply with any request for the delivery of the whole

or any part of any sample which is made in accordance with the preceding provisions

of this clause.



Reports to be treated as confidential

32. All records, returns, plans, maps, samples, accounts and information (in this

clause referred to as "the specified data") which the Licensee is or may from time to

time be required to furnish under the provisions of this licence shall be supplied at the

expense of the Licensee and shall not (except with the consent in writing of the

Licensee which shall not be unreasonably withheld) be disclosed to any person not in

the service or employment of the OGA or the Crown-



Provided that(a) the OGA shall be entitled at any time to make use of any of the specified

data for the purpose of preparing and publishing such returns and reports as

may be required of the OGA by law;

(b) the OGA shall be entitled at any time to furnish any of the specified data

to the Natural Environment Research Council and to any other body of a like

nature as may from time to time be carrying on activities of a substantially

similar kind to the geological activities at present carried on by the said

Council;

(c) the OGA, the said Council and any such other body shall be entitled at

any time to prepare and publish reports and surveys of a general nature

using information derived from any of the specified data;

(d) the OGA, the said Council and any other such body shall be entitled to

publish any of the specified data of a geological, scientific or technical kind

either(i) after the expiration of the period of three years beginning with the

date when the data were due to be supplied to the OGA in

accordance with clause 29 or 30 of this licence, or if earlier, the date

when the OGA received those data;

(ii) after the licence ceases to have effect, whether because of its

determination, revocation or the effluxion of time; or



Page 23 of 38



Licence P2503



®



(iii) after the expiration of such longer period as the OGA may

determine after considering any representations made to it by the

Licensee about the publication of data in pursuance of this

sub-paragraph.



Inspection of records etc.

33. The Licensee shall(a) permit any person who is appointed by the OGA for the purpose to

inspect, and to take copies of and make notes from, all books, papers, maps

and other records of any kind kept by the Licensee in pursuance of this

licence or in connection with activities about which the OGA is entitled to

obtain information in pursuance of clauses 26(3) and 30(3) of this licence;

and

(b) furnish that person at reasonable times with such information and provide

him at reasonable times with such reasonable assistance as he may request

in connection with or arising out of an inspection in pursuance of this clause.



Rights of access

34. Any person or persons authorised by the Minister or the OGA shall be entitled at

all reasonable times to enter into and upon any of the Licensee's installations or

equipment used or to be used in connection with searching, boring for or getting

Petroleum in the Licensed Area for the purposes hereinafter mentioned(a) to examine the installations, Wells, plant, appliances and works made or

executed by the Licensee in pursuance of the licence and the state of repair

and condition thereof; and

(b) to execute any works or to provide and install any equipment which the

OGA may be entitled to execute or provide and install in accordance with the

provisions hereof.



Power to execute works

the Licensee shall at any time fail to perform the obligations arising under the

terms and conditions of any of clauses 14, 19, 22 or 23, of this licence, the OGA shall

be entitled, after giving to the Licensee reasonable notice in writing of its intention, to

execute any works and to provide and install any equipment which in the opinion of

the OGA may be necessary to secure the performance of the said obligations or any

of them and to recover the costs and expenses of so doing from the Licensee.

35.



If



Right of distress

36. -(1) This clause applies in respect of any part of the Licensed Area situated within

the English or Northern Irish areas as defined in article 1(2) of the Civil Jurisdiction

(Offshore Activities) Order 1987.

(2) If and whenever any of the payments mentioned in clause 12(1) of this licence or

any part thereof shall be in arrear or unpaid for 28 days next after any of the days



whereon the same ought to be paid (whether the same shall have been legally

demanded or not) then and so often as the same may happen the OGA may (as an

additional remedy and without prejudice to any other rights and remedies to which it

would be entitled) enter into and upon any of the Licensee's installations and

equipment used or to be used in connection with searching, boring for or getting



Page 24 of 38



Licence P2503



Petroleum in the Licensed Area and may seize and distrain and sell as a landlord

may do for rent all or any of the stocks of Petroleum, engines, machinery, tools,

implements, chattels and other effects belonging to the Licensee which shall be

found in or upon or about any of the Licensee's installations and equipment so

entered upon and out of the moneys arising from the sale of such distress may retain

and pay all the arrears of the said payments and also the costs and expenses of and

incident to such distress and sale and shall pay the surplus (if any) to the Licensee.



Diligence



37.-(1) This clause applies in respect of any part of the Licensed Area situated within

the Scottish area as defined in article 1 (2) of the Civil Jurisdiction (Offshore Activities)

Order 1987.



and whenever any of the payments mentioned in clause 12(1) of this licence or

any part thereof shall be in arrear or unpaid for 28 days next after any of the days

whereon the same ought to be paid (whether the same shall have been legally

demanded or not), then and so often as the same may happen the OGA may (as an

additional remedy and without prejudice to any other rights and remedies to which it

would be entitled) do diligence in respect thereof in like manner as a landlord may do

diligence in respect of unpaid arrears of rent and such diligence shall be effectual to

attach all or any of the stocks of Petroleum, engines, machinery, tools, implements

and other effects belonging to the Licensee which shall be found on or about any of

the Licensee's installations and equipment used or to be used in connection with

searching, boring for or getting Petroleum in the Licensed Area, and where in

pursuance of such a diligence a sale of such effects as shall have been attached

thereby takes place the OGA may out of the proceeds thereof retain and pay all the

arrears of the said payments and also the expenses of such incident to such

diligence and sale and shall pay the surplus thereof (if any) to the Licensee.

(2)



If



Indemnity against third party claims

38. The Licensee shall at all times keep the OGA effectually indemnified against all

actions, proceedings, costs, charges, claims and demands whatsoever which may be

made or brought against the OGA by any third party in relation to or in connection

with this licence or any matter or thing done or purported to be done in pursuance

thereof.



Advertisements, prospectuses etc.

39. No statement shall be made either in any notice, advertisement, prospectus or

other document issued by or to the knowledge of the Licensee or in any other

manner claiming or suggesting whether expressly or by implication that the OGA has

formed or expressed any opinion that the Licensed Area is from its geological

formation or otherwise one in which Petroleum is likely to be obtainable.



Restrictions on assignment, etc.

40. -(1) The Licensee shall not, except with the consent in writing of the OGA and in

accordance with the conditions (if any) of the consent do anything whatsoever

whereby, under the law (including the rules of equity) of any part of the European

Union or of any other place, any right granted by this licence or derived from a right

so granted becomes exercisable by or for the benefit of or in accordance with the



Page 25 of 38



Licence P2503

directions of another person.

(2) An agreement permitting the carrying out of geological surveys by physical or

chemical means in the Licensed Area is not prohibited by paragraph (1) of this clause

if the person by whom such surveys are to be carried out is(a) the holder of a licence granted by the OGA of the right, in common with all

other persons to whom the like right may have been granted, to search for

Petroleum in respect of an area which would include the Licensed Area, but

for a proviso therein excluding the exercise of such right in the Licensed Area

without the consent of the Licensee; or

(b) the holder of a licence granted by the OGA to search and bore for, and

get, Petroleum in an area adjacent to the Licensed Area,



the information intended to be obtained by such survey is reasonably

necessary to enable that holder more efficiently to exercise the rights granted by the

licence which he holds from the OGA.



and



if



(3) The Licensee shall not enter into any agreement providing for a person other than

the Licensee to become entitled to, or to any proceeds of sale of, any Petroleum

which, at the time when the agreement is made, has not been but may be won and

saved from the Licensed Area unless the terms of the agreement have been

approved in writing by the OGA either unconditionally or subject to conditions, but the

preceding provisions of this paragraph do not apply to(a) an agreement for the sale of such Petroleum under which the price is

payable after the Petroleum is won and saved; and

(b) an agreement in so far as it provides that, after any Petroleum has been

won and saved from the Licensed Area, it shall be exchanged for other

Petroleum.

(4) The Licensee shall not, without the consent of the OGA, dispose of any

Petroleum won and saved in the Licensed Area or any proceeds of sale of such

Petroleum in such a manner that the disposal does, to the knowledge of the Licensee

or without his knowing it, fulfil or enable another person to fulfil obligations which a

person who controls the Licensee, or a person who is controlled by a person who

controls the Licensee, is required to fulfil by an agreement which, if the person



required to fulfil the obligations were the Licensee, would be an agreement of which

the terms require approval by virtue of paragraph (3) of this clause; and for the

purposes of this paragraph, whether a person has control of another person is to be

determined as if sections 450(2) to (4) and 451(1) to (5) of the Corporation Tax Act

2010 apply subject to the following modifications(a) for the words "the greater part" wherever they occur in section 450(3),

there are substituted the words "one-third or more";

(b) in section 451 (4) and (5), for the word "may" there is substituted the word

"must"; and

(c) in section 451(4) and (5) any reference to an associate of a person is to

be construed as including only(i) a relative (as defined in section 448(2) of that Act) of the person;

(ii) a partner of the person; and

(iii) a trustee of a settlement (as defined in section 620 of the Income

Tax (Trading and Other Income) Act 2005 of which the person is a

beneficiary.

(5) Where the Licensee is two or more persons, then, without prejudice to the



Page 26 of 38



Licence P2503



preceding provisions of this clause, none of those persons shall enter into an

agreement with respect to the entitlement of any of them to(a) the benefit of any right granted by this licence; or

(b) any Petroleum won and saved from the Licensed Area; or

(c) any proceeds of sale of such Petroleum,



unless the terms of the agreement have been approved in writing by the OGA, but

the preceding provisions of this paragraph do not apply to an agreement for the sale,

or for the proceeds of such sale, of such Petroleum under which the price is payable

after the Petroleum is won and saved and an agreement in so far as it provides that,

after any Petroleum has been won and saved from the Licensed Area, it shall be

exchanged for other Petroleum.



Power of revocation

41. -(1) If any of the events specified in the following paragraph shall occur then and

in any such case the OGA may revoke this licence and thereupon the same and all

the rights hereby granted shall cease and determine but subject nevertheless and

without prejudice to any obligation or liability incurred by the Licensee or imposed

upon him by or under the terms and conditions hereof.

(2) The events referred to in the foregoing paragraph are( a) any payments mentioned in clause 12( 1) of this licence or any part thereof

being in arrear or unpaid for two months next after any of the days whereon

the same ought to have been paid;

(b) any breach or non-observance by the Licensee of any of the terms and

conditions of this licence;

(c) in Great Britain, the bankruptcy or sequestration of the Licensee;

(d) in Great Britain, the making by the Licensee of any arrangement or

composition with his creditors;

(e) in Great Britain, if the Licensee is a company, the appointment of a

receiver or administrator or any liquidation whether compulsory or voluntary;

(f) in a jurisdiction other than Great Britain, the commencement of any

procedure or the making of any arrangement or appointment substantially

corresponding to any of those mentioned in sub-paragraphs (c) to (e) of this



paragraph;

(g) any breach or non-observance by the Licensee of the terms and

conditions of a Development Scheme;

(h) if the Licensee is a company, the Licensee's ceasing to direct and control

either(i) its operations under the licence; or

(ii) any commercial activities in connection with those operations,

from a fixed place within the United Kingdom;

(i) any breach of a condition subject to which the OGA gave its approval in

pursuance of clause 40(3) of this licence;

U) any breach of clause 40(5) of this licence,



and where two or more persons are the Licensee any reference to the Licensee

sub-paragraphs (c) to (h) of this paragraph is a reference to any of those persons.



in



(3) The OGA may revoke this licence, with the like consequences as are mentioned

paragraph (1) of this clause, if(a) the Licensee is a company; and



in



Page 27 of 38



Licence P2503

(b) there is a change in the control of the Licensee; and

(c) the OGA serves notice in writing on the Licensee stating that the OGA

proposes to revoke this licence in pursuance of this paragraph unless such a

further change in the control of the Licensee as is specified in the notice

takes place within the period of three months beginning with the date of

service of the notice; and

(d) that further change does not take place within that period.

(4) There is a change in the control of the Licensee for the



purposes of paragraph

of

this

clause

whenever

a

has

control

of

the

Licensee

who did not have

(3)(b)

person

control of the Licensee when this licence was granted (or, if there has been an

assignment or assignation of rights conferred by this licence, when those rights were

assigned to the Licensee); and sections 450(2) to (4) and 451 (1) to (5) of the

Corporation Tax Act 2010 shall apply, for the purpose of determining whether for the

purposes of this paragraph a person has or had control of the Licensee, with the

modifications specified in clause 40(4) of this licence.

(5) Where two or more persons are the Licensee and any of them is a company,

paragraphs (3) and (4) of this clause shall have effect as if(a) sub-paragraph (a) of paragraph (3) were omitted;

(b) in sub-paragraph (b) of that paragraph, after the word "of' there were



inserted the words "any company included among the persons who together

constitute"; and

(c) for the word "Licensee" in any other provision of those paragraphs there

were substituted the word "company".



Power of partial revocation

42. -(1) This clause applies in a case where two or more persons are the Licensee

and(a) an event mentioned in clause 41(2)(c), (d), (e), (f) or {h) occurs in relation

to one of those persons; or

(b) the conditions specified in clause 41 (3) are satisfied in relation to one of



those persons.



(2) Where this clause applies, the OGA may exercise the power of revocation

clause 41 to revoke the licence in so far as it applies to the person mentioned

paragraph (1)(a) or (b).



in

in



(3) If the OGA exercises the power in paragraph (2), the rights granted to the person

under this licence cease, but without prejudice to any obligation or liability incurred by

the person or imposed under the terms and conditions of this licence.



(4) Where this licence is revoked in relation to one person under this clause, it

continues to have effect in respect of the other person who constitutes, or persons

who together constitute, the Licensee and in relation to whom it is not revoked.



Arbitration

43. -(1) If at any time any dispute, difference or question shall arise between the

Minister or the OGA and the Licensee as to any matter arising under or by virtue of

this licence or as to their respective rights and liabilities in respect thereof then the

same shall, except where it is expressly provided by this licence that the matter or



Page 28 of 38



Licence P2503



®



thing to which the same relates is to be determined, decided, directed, approved or

consented to by the Minister or the OGA, be referred to arbitration as provided by the

following paragraphs.

(2) The arbitration referred to in the foregoing paragraph shall be by a single

arbitrator who, in default of agreement between the Minister or the OGA and the

Licensee and, in the case of arbitration in relation to a Development Scheme, other

Licensees affected by that scheme, as to his appointment, shall be appointed by the

Lord Chief Justice of England for the time being.

(3) To the extent that this clause applies to any part of the Licensed Area situated

within the Scottish area, as defined in article 1 (2) of the Civil Jurisdiction (Offshore

Activities) Order 1987, this clause shall have effect as if(a) for the word "arbitrator", wherever it occurs in paragraphs (2) and (5) of

this clause there were substituted the word "arbiter"; and

(b) for the words "the Lord Chief Justice of England", in paragraph (2) there

were substituted the words "the Lord President of the Court of Session".

(4) To the extent that this clause applies to any part of the Licensed Area situated

within the Northern Irish area, as defined in article 1 (2) of the Civil Jurisdiction

(Offshore Activities) Order 1987, this clause shall have effect as if for the words "the

Lord Chief Justice of England", in paragraph (2), there were substituted the words

"the Lord Chief Justice of Northern Ireland".



case of any such arbitration which relates to a Development Scheme the

Licensee shall unless the arbitrator otherwise determines perform and observe the

terms and conditions of the Development Scheme pending the decision of the

arbitrator.

(5) In the



Ministry of Defence

44. -(1) The Licensee shall give the Ministry of Defence six months' prior notice of

any installation movements within a Block.

(2) The Licensee shall give the Ministry of Defence six weeks' prior notice of any

seismic survey within a Block.

(3) The Licensee shall at his own expense, install and maintain underwater sonar

beacons to Ministry of Defence specifications on any structures that may be

temporarily within a Block provided that there shall be no requirement to fit such



beacons to fixed and charted installations.



Relationship with fishing industry

45. -(1) The Licensee shall appoint a fisheries liaison officer who shall agree suitable

arrangements with the seismic survey and supply vessel owners employed by the

Licensee, their masters and the organisations which represent the local fishing

industry in order to promote good working relationships between the various parties.

The setting up of the arrangements shall be the responsibility of the Licensee. In

particular the Licensee shall(a) consult the organisations which represent the local fishing industry about

the sea routes to be used by supply vessels;

(b) after informing the OGA of the result of such consultations, agree with it



Page 29 of 38



Licence P2503

which routes shall be used to minimise interference with fishing activities

without thereby unreasonably increasing transit times;

(c) ensure that the agreed routes are used unless safety of navigation or

security of cargo considerations dictate otherwise; and

(d) take all reasonable steps to ensure that a responsible person who is

fluent in English is a member of the crew of the supply vessel.

(2) The Licensee shall make every effort to locate and remove, without unreasonable

delay, any debris resulting from the licensed activities. The Licensee shall consult the

relevant fishing organisations on the method of clearance and inform the OGA of the

result of such consultation. If as a result of such consultation the OGA determines

that the method of clearance of debris should be modified, such modifications shall

be observed by the Licensee.

(3) Claims for damage to or loss of gear or loss of fishing time arising from reported

debris shall be dealt with promptly by the Licensee.



Straight to Second Term Licence

46. -(1) If no Initial Term is specified in Schedule 5 to this licence, this licence applies

with the following modifications.

(2) In clause 1 (1 ),the following definitions are omitted(a) "Early Surrender Area";

(b) "Early Surrender Period";

(c) "Initial Licensed Area";

(d) "Initial Term";



(e) "Mandatory Surrender Area";



"phase A";

(g) "Phase B";

(h) "Phase C"; and

(f)



(i) "Work



Programme".



(3) For clause 3(2) there is substituted"(2) Unless sooner determined under any of its provisions, this licence shall



continue(a) for the Second Term, subject to clause 10;

(b) for the Third Term, subject to clauses 8 and 10."



clauses are omittedclause

4,

(a)

(b) clause 4A,

(c) clause 5, and

(d) clause 6.



(4) The following



(5) For clause 7 there is substituted-



"7.- Extension of the Second Term

(1) This clause applies to an extension to be made to the Second



Term.

(2) At any time not later than three months before the expiry of the

Second Term, or such shorter notice period as the OGA may in its

discretion permit, the Licensee may, subject to payment of the sums

specified in Schedule 2 and to performance of the terms and



Page 30 of 38



Licence P2503



conditions herein contained, give notice in writing to the OGA that the

Licensee desires that term to be extended for a further period.

(3) Where such notice is given, the OGA may in its discretion direct in

writing that the Second Term be extended; and paragraph (2) of this

clause shall apply to that term as extended.

(4) Any extension shall be for a period, and subject to such

conditions, as the OGA may determine.

(5) Where the Second Term is extended, clause 3 shall apply in

respect of that term as extended.

(6) Where the Second Term is extended by a period, the Third Term

shall be reduced by the same amount."

(6) In



clause 11(1) and (2), "5, 6 or" is omitted.



(7) Clause 16(1) is omitted.



WITNESS WHEREOF these presents consisting of this and the preceding pages,

together with the Schedules annexed, are executed as follows:

IN



Signed for and on behalf of the Oil and Gas Authority by:

(full

- delete as

appropriate)

(Director/Secretary/Authorised Signatory



[KIA\y.2y

In



the presence of this witness:



name)



®



2,



Licence P2503



Signed* for and on behalf of SUMMIT EXPLORATION AND PRODUCTION LIMITED by:



(Director / Seenetary /

on



er



(signature)



person

authorised



03 /11/2020



-



(full



name)



delete as appropriate)



(date), at



LO/DO/



(town),



and either:

(signature)



(full



name)



(Director/ other authorised person - delete as appropriate)

on



(date), at



(town),



or in the presence of this witness:

(signature).



ot



(tut name)



(address).



Two persons must sign this document for each company. Where the law of Scotland applies (which will normally be where the

licensed area lies within "the Scottish area" as defined by S.I. 1987/2197), one of the persons must be an authorised signatory,

who may be a director of the company, the company secretary, or another person authorised to sign on the companya€™s

behalf. The second person may be either an authorised signatory, or another person who signs the document as a witness.



Page 32 of 38



Licence P2503

THIS IS SCHEDULE 1 REFERRED TO IN THE FOREGOING LICENCE BETWEEN

THE OIL AND GAS AUTHORITY AND SUMMIT EXPLORATION AND

PRODUCTION LIMITED



Description of Licensed Area

Block 3/9c is the region bounded by the following coordinates:

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)



60°4400.000'N 1736'00.000"E

6044'00.000'N 1°48'00.000"E

60°40'00.000"N 1 °48'00.000"E



6040'00.000'N 1°39'00.000"E

60°41'00.000"N 1°39'00.000"E

60°41 '00.000"N 1 °37'00.000"E



60°42'00.000"N 1 °37'00.000"E

60°42'00.000"N 1°36'00.000"E

6044'00.000'N 1°36'00.000"E



The above coordinates were specified using "European Datum 1950".

The lines joining coordinates (1) to (9) are navigated as loxodromes.

Block 3/1 0a is the region bounded by the following coordinates:

(1)

(2)

(3)

(4)

(5)



6044'00.000"N 1%48'00.000"E

60°74400.000"N 150'00.000"E

60%40'00.000"N 1°50'00.000"E

60°40'00.000"N 1%48'00.000"E

60"44'00.000"N 1%48'00.000"E



The above coordinates were specified using "European Datum 1950".

The lines joining coordinates (1) to (5) are navigated as loxodromes.

Block 3/14c is the region bounded by the following coordinates:



60°40'00.000'N 1%41'00.000"E

60°40'00.000'N 1%48'00.000"E

60°38'00.000"N 1%48'00.000"E

60°38'00.000"N 1 °47'00.000"E

60°37'00.000"N 1 °47'00.000"E

60°37'00.000"N 1°4500.000"E

60°35'00.000'N 1%45'00.000"E

60°35'00.000"N 1°4400.000"E

60°36'00.000"N 1 °44'00.000"E

(10) 60°36'00.000N 1%43'00.000"E

(11) 60°39'00.000'N 1743'00.000"E

(12) 60°39'00.000"N 1%41'00.000"E



(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)



(13) 60%40'00.000'N 1%41'00.000"E



The above coordinates were specified using "European Datum 1950".

The lines joining coordinates (1) to (13) are navigated as loxodromes.

Block 3/15d is the region bounded by the following coordinates:



Page 33 of 38



=



Licence P2503



®

(1)

(2)

(3)

(4)

(5)



60°40'00.000"N 1 °48'00.000"E

60%40'00.000"N 150'00.000"E

60°39'00.000"N 1750'00.000"E

60·39'00.000"N 1%48'00.000"E



60°40'00.000"N 1 °48'00.000"E



The above coordinates were specified using "European Datum 1950".

The lines joining coordinates (1) to (5) are navigated as loxodromes.



Signed for the Oil and Gas Authority:



Signed for SUMMIT EXPLORATION AND PRODUCTION LIMITED:



Page 34 of 38



Licence P2503

THIS IS SCHEDULE 2 REFERRED TO IN THE FOREGOING LICENCE BETWEEN

THE OIL AND GAS AUTHORITY AND SUMMIT EXPLORATION AND

PRODUCTION LIMITED



Consideration for Licence

(1) On the Commencement Date, and on each anniversary of the Start Date, the Licensee shall pay the

OGA sums ("Periodic Payments") calculated as the following amounts multiplied by the Area Factor:

(a) on each such date during Phase A: £15;

(b) on each such date during Phase B: £30;

(c) on each such date during Phase C: £150;

(d) on each subsequent date after the Initial Term:

(i) on the 1st such date: £300;

(ii) on the 2nd such date: £900;

(iii) on the 3rd such date: £1800;

(iv) on the 4th such date: £2700;

(v) on the 5th such date: £3900;

(vi) on the 6th such date: £5100;

(vii) on the 7th such date: £6300;

(viii) on the 8th such dale: £6900;

(ix) on the 9th such dale, and every subsequent such date: £7500;

(2) The Periodic Payments shall be subject to variation in accordance with the following provisions:

(a) The Periodic Payments shall be increased or subsequently reduced in line with movements in

the Index of the Price of Crude Oil acquired by Refineries (published in the Digest of UK Energy

Statistics) if the OGA so determines. The OGA shall give notice of any such determination

("biennial determination") not less than one month before the date on which such payment falls

due, and shall specify in the notice the increase or reduction in the amount payable. Movements

in the Index shall be calculated by reference to a comparison between the arithmetic mean of the

Index levels for the two latest calendar years for which figures are available at the time when the

determination is made, and the arithmetic mean of the Index levels for the two latest calendar

years before the Start Date. In the event that the Index of the Price of Crude Oil acquired by

Refineries ceases to be published the OGA may substitute arrangements for redetermination of

periodic payments having substantially similar effect to those set out above.

(b) The increase or reduction specified in a biennial determination shall be payable or take effect

on the anniversary of the Start Date next following the date of the relevant determination.

(c) No biennial determination shall have effect so as to reduce the Periodic Payments below the

levels set out in sub-paragraph (1) above.

(d) The Minister shall not make a biennial determination increasing or reducing the amounts

payable where that increase or reduction would be 5% or less of the levels set following the

previous biennial determination.

(3) In this Schedule:

(a) "Commencement Date" means the date specified in clause 3(1) of the licence;

(b) "the Initial Term" means the period specified as such in Schedule 5 on the date that this



Licence was granted;



(c) "Periodic Payments" means the payments set out at paragraphs (1) and (2) above; and

(d) "phase A", "Phase B" and "Phase C" are as defined at Schedule 3 of the licence; and



(e) "the Area Factor" means the number of square kilometres comprised

the date upon which the Periodic Payment in question becomes due.



Page 35 of 38



in



the Licensed Area at



Licence P2503

THIS IS SCHEDULE 3 REFERRED TO IN THE FOREGOING LICENCE BETWEEN

THE OIL AND GAS AUTHORITY AND SUMMIT EXPLORATION AND

PRODUCTION LIMITED



Work Programme



Phase A

Firm Commitment



The Licensee shall:

(a) obtain 25sq kms 3D seismic data;

(b) reprocess 84sq kms 3D seismic data;

(c) complete a petrophysical analysis on 15 wells;



(d) complete a rock physics study on 5 wells;



(e) complete a seismic inversion and facies classification to fully evaluate the Licence

prospectivity;



There is no Phase B



Phase



C



The Licensee shall: drill a well to 2,010m TVDSS' or to the top Flugga/Hermod

Member, whichever is the shallower.



(II)



*TVDSS True Vertical Depth Sub-Sea



Nothing here fetters the OGA's discretion when considering whether to consent to

any specific activity.



Page 36 of 38



Licence P2503

THIS IS SCHEDULE 4 REFERRED TO IN THE FOREGOING LICENCE BETWEEN

THE OIL AND GAS AUTHORITY AND SUMMIT EXPLORATION AND

PRODUCTION LIMITED



Companies

SUMMIT EXPLORATION AND PRODUCTION LIMITED with registered address of

23 COLLEGE HILL, LONDON, EC4R 2RP (registered number: 08860426).



Page 37 of 38



r



Licence P2503

THIS IS SCHEDULE 5 REFERRED TO IN THE FOREGOING LICENCE BETWEEN

THE OIL AND GAS AUTHORITY AND SUMMIT EXPLORATION AND

PRODUCTION LIMITED



Timing and mandatory surrender provisions

The Start Date is



1



December 2020.



The Mandatory Surrender Area is an area comprising 50% of the Initial Licensed

Area.



Phase A



is the period of 3 years beginning at the Start Date.



There is no Phase



Phase



B.



C is the period of 2 years beginning with the day after



Phase A ends.



The Second Term is the period of 4 years beginning with the day after the Initial

Term ends.

The Third Term is the period of 18 years beginning with the day after the Second

Term ends.



Page 38 of 38