Relinquishment Report for

Licence P1626

Estimates, statistics, opinions and forecasts contained in this document are based on TOTAL’s own information and knowledge. They are provided in good faith, but, by their nature, are based on a number of assumptions and are subjective. Readers should therefore carry out appropriate reviews and due diligence to satisfy themselves as to all information contained in this document including, without limitation, TOTAL’s opinions, prospect evaluations, reserve figures, production and cost forecasts and all technical aspects of production, transmission and other facilities. While this information was prepared in good faith, no representation or warranty, expressed or implied, is or will be made, and no responsibility or liability is or will be accepted by TOTAL or any of their respective affiliates or subsidiaries, employees, officers, directors and agents as to, or in relation to, the accuracy or completeness of this document and any liability thereof is hereby expressly disclaimed.

In furnishing this Relinquishment Report, TOTAL undertakes no obligation to provide the recipient with access to any additional information.

2

TABLE OF CONTENTS:

LICENCE INFORMATION ..............................................................................................................3

LICENCE SYNOPSIS ......................................................................................................................3

WORK PROGRAMME SUMMARY .................................................................................................4

DATABASE ..................................................................................................................................4

PROSPECTIVITY UPDATE .............................................................................................................8

1.1 CORFE ............................................................................................................................................. 8 1.2 ADDITIONAL PROSPECTIVITY .............................................................................................................. 10

FURTHER TECHNICAL WORK UNDERTAKEN ................................................................................ 12

RESOURCE AND RISK SUMMARY ............................................................................................... 12

CONCLUSIONS .......................................................................................................................... 12

CLEARANCE .............................................................................................................................. 13

TABLE OF FIGURES:

Figure 1: Location of licence P1626............................................................................................................... 3 Figure 2: 22/27a-2 & 22/28b-2 Well Summaries .......................................................................................... 5 Figure 3: 29/2b-5 & 29/3b-4 Well Summaries .............................................................................................. 6 Figure 4: P1626 Seismic Data Coverage ........................................................................................................ 7 Figure 5: Random line showing 2013 reprocessing to PSDM (bottom) compared with 2010 CBM-PSDM (top) ............................................................................................................................................................... 8 Figure 6: 29/3b-9 Well Summary .................................................................................................................. 9 Figure 7: Corfe Seismic Dip Line through Well Location.............................................................................. 10 Figure 8: Seismic Dip Line through Phoebus Prospect ................................................................................ 11 Figure 9: P1626 Additional Prospectivity .................................................................................................... 12

3

LICENCE INFORMATION

Licence Number: P1626 Licence Round: 25th Round licence Licence Type: Traditional Block Number: 29/3b Relinquished: 11th February 2017 Total E&P UK Ltd confirms OGA is free to publish this report and that all third party ownership rights have been considered and appropriately cleared for publication purposes.

LICENCE SYNOPSIS Licence P1626, consisting of Block 29/3b, was awarded to Total E&P UK (75% TEPUK, 25% E.ON E&P UK Ltd – later Premier Oil) as part of the 25th UKCS Licensing Round (Figure 1). The Licence was covered by an Initial Term of 4 years from the Start Date of 12th February 2009, which was then later extended until 11th February 2017. Approximately 50% of the licence was relinquished in February 2013. The main prospect on the licence identified at the time of the 25th Round application was the Corfe

prospect, consisting of a 3-way fault closure with a primary objective at Triassic Skagerrak level and

secondary objective at Upper Jurassic Fulmar level

Figure 1: Location of licence P1626

4

WORK PROGRAMME SUMMARY

The agreed work programme consisted of firm commitments to: Obtain 260km2 of 3D Long Offset seismic data

Reprocess 490km² of 3D seismic data to Pre SDM

Drill a well to 5450m or to the Triassic, whichever is the shallower, on the Corfe Prospect

The firm exploration commitment well, 29/3b-9, was drilled on the Corfe structure. The well was spudded on 4th January 2015 and completed on 23rd July 2015. It was plugged and abandoned as a non-economic light oil discovery at Upper Jurassic Fulmar level. No hydrocarbons were encountered in the primary Triassic Skagerrak Formation target.

DATABASE

Well data

Four key wells have been used for the evaluation of the P1626 Licence: 22/27a-2, 22/28b-2, 29/2b-5 and 29/3b-4. Well 22/27a-2 (Figure 2) drilled by Ranger in 1985 is located 3.5 km to the NW of Block 29/3b. The well encountered hydrocarbon-bearing Fulmar reservoir before TD’ing in water-bearing Triassic sediments. The well was tested at a rate of 9.4 mmscfd of gas and 1020 bpd of condensate. Average porosities in the Upper Jurassic Fulmar and Triassic were 17% and 13%, with a NTG of 0.5 and 0.3, respectively. Well 22/28b-2 (Figure 2) drilled 4 km North of Block 29/3b by BP in 1990, also encountered hydrocarbons in the Upper Jurassic Fulmar Fm. It tested gas at 3.55 mmscfd and condensate at 414 bpd before being abandoned. The well TD’d in the Triassic, which was found to be water-bearing. Well 29/2b-5 (Figure 3), located just West of the 29/3b block boundary, was drilled by Enterprise in 1991. It was suspended after having encountered only shows in the Fulmar, Pentland and Triassic. A post-mortem study shows that the disappointing results of the well are most likely due to poor reservoir quality with residual hydrocarbons trapped within the non-connected secondary porosity in the topmost sand layer. Well 29/3b-4 (Figure 3) is located 8 km to the South of block 29/3b. It was drilled in 1991 by Shell and abandoned with oil shows in the Triassic. No Fulmar shoreface sands were encountered with potentially only a thin transgressive lag developed between the Lower Judy sands and Heather shales. Several reasons for the disappointing result can be invoked; lack of charging, lateral juxtaposition with Upper Jurassic sands to the West of the well and the most likely explanation of top seal breach. Unfortunately, this interpretation cannot be substantiated due to the lack of valid pressure data.

5

Figure 2: 22/27a-2 & 22/28b-2 Well Summaries

6

Figure 3: 29/2b-5 & 29/3b-4 Well Summaries

7

Seismic Data TEPUK fulfilled the firm license commitment to obtain 260km² of 3D long offset seismic data and to reprocess 490km² of 3D seismic data to PreSDM (Beam and Kirchhoff migrations). The 2010 datasets were used for the pre-drill evaluation of Corfe and well planning. In addition to the seismic reprocessing effort performed as part of the work commitment, P1626 was included in a larger PSDM project and a new PreSDM Kirchhoff migrated volume was delivered in 2013 (Figure 4). Due to significant uplift in image quality, this volume was used for the post well evaluation of the Corfe discovery and for assessment of the further prospectivity on the licence (Figure 5).

Figure 4: P1626 Seismic Data Coverage

8

Figure 5: Random line showing 2013 reprocessing to PSDM (bottom) compared with 2010 CBM-PSDM (top)

PROSPECTIVITY UPDATE

1.1 Corfe

The main prospect identified in the license at the time of the 25th Round application was Corfe, a 3-way fault closure with a primary objective at Triassic Skagerrak level and secondary objective at Upper Jurassic Fulmar level. In addition to this prospect other objects were identified: Phoebus (Rotliegend level), Madras and Caernarfon (Triassic level), and P1 and P2 (Palaeocene).

9

Firm commitment well 29/3b-9 found the primary objective in the Triassic Skagerrak to be water wet, but made a light oil discovery in the Upper Jurassic Fulmar formation (secondary objective) (Figures 5 and 6).

Figure 6: 29/3b-9 Well Summary

10

Figure 7: Corfe Seismic Dip Line through Well Location

Fluid samples were recovered, volatile oil with a GOR of 450 Sm³/m³, but the discovery was not tested. The Corfe discovery is located 100% within the 29/3b block, but due to the associated resources, the discovery is not economic for a standalone development. Resources evaluated are as follows:

DISCOVERY Fluid Type LICENSE P1626 OPEN/OTHER ACREAGE Resources (Mboe)

1C 2C 3C

Corfe Light Oil 100% 0% 0.5 1.6 13

1.2 Additional Prospectivity

In addition to the prospects identified at the time of the application a full screening has been undertaken on the P1626 Licence. No significant additional prospectivity has been identified as discussed below. Tertiary Two Palaeocene Forties turbidite prospects (P1 & P2) were mapped on the licence (Figure 7). They are both 4-way dip salt induced structural traps and are a continuation of the extensive Forties turbidite system that has been found in all surrounding offset wells including the Corfe well and those in the Starling field which is in production 5km to the south-west of the licence. The structures are low relief (P1: 30m, P2: 35m) and of limited areal extent (P1 ~4km², P2 ~5km²) and so the associated resources are small and non-economic.

11

Triassic The 29/3b-9 well penetrated the Triassic Skagerrak formation and found it to be water bearing. There is a continuation of the structure up-dip of the location where the well entered the Skagerrak and so there is the possibility of attic volumes.

Although the quality of the reservoir found in 29/3b-9 was relatively degraded, the main risks for the presence of attic volumes are the lack of a top seal between the Triassic and the Fulmar, since the Pentland has not been proved to be an effective seal by the 29/3b-9 well and the migration path effectiveness, since the current interpretation has limited fetch area draining into the structure.

The Triassic Caernarfon and Madras prospects mapped at the time of the licence application were later interpreted to be salt features using the 2013 enhanced PSDM seismic.

Permian Rotliegend A large 2-way dip, fault bounded, Permian age, rotated fault block structure (Phoebus) was mapped on the P1626 licence (Figure 8). The reservoir is the aeolian Rotliegend sandstone which is a prolific reservoir in the Southern Gas Basin and is the reservoir in the Carnoustie field 50km to the north of Phoebus.

Figure 8: Seismic Dip Line through Phoebus Prospect

Although the structure is large and the potential resources are significant, there is a major risk associated with the hydrocarbon migration since the structure is blanketed by Zechstein salt and so not thought to be in direct contact with the Kimmeridge Clay source rock. The presence of a Palaeozoic petroleum system in the basin has not been proved with the limited well penetrations in the vicinity (Puffin wells 29/5a-1Z & 29/10-3Z and Quasimodo well 29/10-7) giving negative results. In addition there is a risk on the reservoir quality since at 5700m the burial depth of the structure is greater than what has been tested in the basin at Rotliegend level.

12

PROSPECTS Proportion of P50 Case in Licence

DEPTH (CREST)

Fluid Type MUR Pg

LICENSE P1626

OPEN/OTHER ACREAGE

m (Mboe)

P1 Palaeocene 100% 0% 2750 GC 0.8 35%

P2 Palaeocene 100% 0% 2755 GC 1.1 35%

Corfe Triassic Attic 100% 0% 4780 Light Oil 4.5 20%

Phoebus Rotliegend 100% 0% 5700 GC 562 7%

Figure 9: P1626 Additional Prospectivity

FURTHER TECHNICAL WORK UNDERTAKEN No additional technical work was undertaken.

RESOURCE AND RISK SUMMARY The only discovered resource on the P1626 licence is the non-economic Upper Jurassic light oil discovery made by the Corfe exploration well, 29/3b-9, drilled by Total in 2015.

CONCLUSIONS The resources discovered in the Corfe Upper Jurassic secondary target are too small to justify any development. Total’s evaluation of the licence’s additional prospectivity indicate small resources in the

13

Tertiary and Triassic prospects and a very high risk on migration with the Rotliegend mapped structure. As a result, Total E&P UK Limited and Premier Oil elected to fully relinquish the P1626 licence.

CLEARANCE

Total E&P UK Ltd confirms OGA is free to publish this report and that all third party ownership rights have been considered and appropriately cleared for publication purposes. The 3D CGG seismic data is held under licence and is property of CGG.