Following recommendations from the Block 123 Technical Workshop and TCM in March 2015, Santos on behalf of the Block 123 JV completed further work on the faulted Lower Miocene objective in the large Xuan Dai Prospect to ascertain possible compartmentalisation of this objective zone. Additionally, a possible transgressive sand sequence between the Lower Miocene and the overlying Late Miocene section was also investigated and volumetric calculations re-run and drilling locations selected for the Xuan Dai and Dan Phu Prospects, The results of this work and well design information were presented during a Block 123 Special OCM convened in Hanoi on 28 July 2015 (attended by Petrovietnam representatives). Santos informed the Block 123 JV that following this technical work, planning was now underway to drill the exploration commitment wells and a detailed time-une for well engineering and procurement was provided {Attachment A). Based on Santos' present estimates for the procurement of long-lead items and a better understanding of meteorological data, the. earliest safe spud date for the Xuan Dai prospect is February 2017 which is after the expiry of Exploration Phase 2 Of the PSC in June 2016.
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