Business Highlights

Key Business Highlights for 2014

• Uplift in Bentley 2P oil reserves from 250 MMstb to 257 MMstb in February 2014, with a further 48 MMstb of Contingent Resources assigned

• Signed Memoranda of Understanding with AMEC, Aibel, Arup, Baker Hughes, COSL and Teekay.

• Signed collaboration agreements with Statoil, Shell and EnQuest to evaluate potential development and operational synergies with neighbouring fields.

• Re-financed balance sheet, with new debt financing of US$135 million of secured 12% coupon Bonds, with repayment of the existing US$80 million unsecured 12.5% loan notes.
• Extension to the Bentley field licence from the Department of Energy and Climate Change until 31 December 2016.

Key Business Highlights for 2013

• Material uplift in Bentley 2P oil reserves from 116 MMstb to 250 MMstb in April 2013, subsequently revised to 257 MMstb of 2P oil reserves in February 2014.

• Signing of a memorandum of understanding with AMEC, setting out commercial principles for future cooperation to support the development of the Bentley field.

• Sale of technical well data for US$15.0 million (£9.8 million) to a third party.

• Strengthened balance sheet, with new debt financing of US$80 million unsecured 12.5% loan notes, with repayment in full of the existing US$60 million unsecured 14% loan notes.
• Continuation of the process to secure a development partner for the Bentley field.

• Development of commercial principles with industry service providers to share the financing, risk and reward of the Bentley field development.

Key Business Highlights for 2012

• 116 MMbbls 2P Reserves assigned for Core Area
• Successful completion of pre-production well test as part of the Phase 1A work programme on the Bentley field
• Safely produced over 149,000 bbls of Bentley crude from two horizontal wellbore sections
• Issue of US$60 million of Unsecured 14% Loan Notes managed by West Face Capital Inc.
• Signing of a US$155 million Reserves Based Lending Facility which shall be used for a substantial part of the overall funding of Phase 1B of the Bentley field development

Key Business Highlights for 2011

• Successful fundraising of £63 million
• Achievement of reserves status for Bentley
• New financing facilities secured for a £60 million Equity Line of Credit
• Significant progress on Field Development Plan with DECC and on the First Phase Development of the Bentley field

Key Business Highlights for 2010

• Successful fund raising of more than £50 million
• Successful testing of 9/3b-6z horizontal well on Bentley
• Full data set obtained, with stabilised flow rate of 2,900 barrels per day
• Successful 9/3b-6 pilot well, giving higher eastern flank reservoir column
• Increase in Standby Equity Distribution Agreement facility to £100 million
• Contracted the Rowan Norway jack-up drilling and production rig
• Planning under way to commence the First Stage Production on Bentley