RH Petrogas

RH Petrogas (RHL): Announced the decision to forgo its seismic option for the production sharing contract for block M-1 located in offshore Myanmar, due to the complexity of the structure in the block. The consideration of ~US$3.6m paid for the seismic option will be written of to its P&L for 2Q13. The farm-in option agreement was made by RHL back on 11 Dec 2012 with Rimbunan Petrogas Ltd (RPL), granted the seismic option to farm-in and acquire 50% of RPL's interest in the block. This saw RHL's share price took a 15% run up over 2 days, up to 27% over the next 2 months. Rimbunan Petrogas is a BVI registered company, and has previously signed a joint venture partnership agreement with Myanmar's IGE Co in Mar 2007. IGE Co is run by the sons of Aung Thaung, who was the Ministry of Industry for Myanmar from 1997 to 2011. Separately, RHL continues to look for new opportunities within Myanmar and has participated in the second onshore bid round for 18 blocks. In addition, RHL has made an application to pre-qualify to participate in Myanmar's offshore bid round for 30 blocks.