Quarterly Report 31 December 2015

HIGHLIGHTS

CAMBAY FIELD, ONSHORE GUJARAT, INDIA
  • Workover on Cambay-77H completed, productirom Cambay-77H has gradually increased from 51 boepd to average 70 boepd by end of December 2015
  • Cambay-19z is now producing oil and associated gas from the Eocene Formation and is performing to expectations
  • Cambay-20 workover successfully completed and workover rig demobilised
  • Negotiations continue with our joint venture partner to address payment of outstanding cash calls, contributions to workovers, timetable and contribution to drilling of Cambay-78H and Cambay-80H wells resulting in delays to planned activities and cashflows
BHANDUT FIELD, ONSHORE GUJARAT, INDIA
  • Construction of the gas production facility completed and ready for start up  
  • Gas buyer responsible for construction of pipeline and estimates completion by end of January 2016
  • Bhandut-3 commercial production is anticipated to commence mid-February
CORPORATE
  • During the quarter, the Company commenced a review of its organisational structure, overhead and corporate costs, with cost savings of between ~15%-20% per annum identified and being implemented in Q1 2016
  • Appointed Joe Salomon as Independent NED, having ~30 years’ experience in the oil and gas industry, in November 2015 
  • With the retirement of two non-executive directors pursuant to the AGM, the Board is reviewing the existing Board structure and the appointment of additional  suitably qualified and experienced directors  
  • Zeta Resources Limited (10.3% shareholder) defaulted on its deferred funding commitment of $9.4 million and commenced legal action against the Company. The Company filed its defence and counterclaim on 16 December 2015. The parties have agreed to a standstill on legal action until 1 March 2016 for parties to explore a possible commercial resolution.