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EXHIBIT 10.53
VARIOUS ENDORSEMENTS TO PEP 38716
PERMIT ENDORSEMENT
Permit PEP 38716
Action In terms of section 36 of the Crown Minerals Act
1991, the Secretary of Commerce, acting under delegated authority
from the Minister of Energy of 07 October 1991, has agreed to
amend the Second Schedule work programme.
Date 10 April 1996
Details The Secretary of Commerce has agreed to amend the
Second Schedule work programme whereby the attached work
programme is adopted for the remainder of the term of the permit.
Certified true and correct
/s/ W.P. Player
W.P. Player
For Acting Unit Manager Permitting and Monitoring
11/04/1996
CERTIFICATE OF CHANGE OF CONDITIONS
IN THE MATTER of the Crown
Minerals Act 1991
AND
IN THE MATTER of Petroleum
Exploration Permit 38716
dated 30 January 1996 in
the name of Marabella
Enterprises Limited, Indo
Overseas Exploration
Limited and Euro Pacific
Energy Pty Limited
PURSUANT to section 36 of the Crown Minerals Act 1991, the
conditions specified in the Second Schedule to the above
mentioned permit are hereby replaced with those attached to this
certificate.
DATED at Wellington this 10th day of April 1996.
SIGNED by Howard Edward Fancy, Secretary of Commerce
/s/ Howard Edward Fancy
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SECOND SCHEDULE
PETROLEUM EXPLORATION PERMIT (PEP) 38716
1. The permit holder shall make all reasonable efforts to
explore and delineate the petroleum resource potential of the
permit area, in accordance with good exploration and mining
practice.
2. The permit holder shall comply with the work programme as
detailed below.
3. The following programme of work shall be undertaken by the
permit holder:
i reprocess and interpret 250 kilometres of existing seismic
data utilising PMPS/DMO techniques as appropriate;
ii acquire, process and interpret 30 kilometres of new seismic
data;
iii acquire aeromagnetic data sufficient to support 3D
modelling; and
either
make a firm commitment by notice in writing to the Secretary
of Commerce to complete the work programme detailed in (b) below;
or
surrender the permit.
SECOND SCHEDULE
PETROLEUM EXPLORATION PERMIT (PEP) 38716
1. The permit holder shall make all reasonable efforts to
explore and delineate the petroleum resource potential of the
permit area, in accordance with good exploration and mining
practice.
2. The permit holder shall comply with the work programme as
detailed below.
3. The following programme of work shall be undertaken by the
permit holder:
(a) within 18 months of the commencement date of the permit:
i reprocess and interpret 250 kilometres of existing seismic
data utilising PMPS/DMO techniques as appropriate;
ii acquire, process and interpret 30 kilometres of new seismic
data;
iii acquire aeromagnetic data sufficient to support 3D
modelling; and
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either
make a firm commitment by notice in writing to the Secretary of
Commerce to complete the work programme detailed in (b) below;
or
surrender the permit
(b) within 30 months of the commencement date of the permit:
i drill on exploration well to a minimum depth of 2,500
metres, or to an approved objective and/or depth unless
geological or engineering constraints encountered whilst drilling
make this unreasonable; and
either
submit, for the approval of the Secretary of Commerce, an ongoing
work programme for the remainder of the permit term;
or
surrender the permit.
PETROLEUM EXPLORATION PERMIT 38716
CROWN MINERALS ACT 1991
Pursuant to Section 25 of the Crown Minerals Act 1991, I
DOUGLAS LORIMER KIDD, Minister of Energy
Do Hereby
Grant Marabella Enterprises Limited 52.80 percent
Indo Overseas Exploration Limited 38.40 percent
Euro Pacific Energy Pty Limited 8.80 percent
The exclusive right to explore for petroleum in
the area described in the First Schedule and more particularly
that delineated on the plan attached hereto.
This Exploration Permit is issued for a term of five years
commencing on the date stated below. The Permit is granted
subject to the Crown Minerals Act 1991 and any regulations made
thereunder, and to the terms and conditions specified in the
Second and Third Schedules hereto.
Dated at Wellington this 30th day of January 1996.
/s/ Doug Kidd
Hon Doug Kidd
Minister of Energy
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SECOND SCHEDULE
PETROLEUM EXPLORATION PERMIT (PEP) 38716
1. The permit holder shall make all reasonable efforts to
explore and delineate the petroleum resource potential of the
permit area, in accordance with good exploration and mining
practice.
2. The permit holder shall comply with the work programme as
detailed below.
3. The following programme of work shall be undertaken by the
permit holder:
(a) within 18 months of the commencement date of the permit:
i reprocess and interpret 250 kilometres of existing seismic
data utilising PMPS/DMO techniques as appropriate;
ii acquire, process and interpret 30 kilometres of new seismic
data;
iii acquire detailed precision gravity data sufficient to
support 3D modelling; and
either
make a firm commitment by notice in writing to the Secretary of
Commerce to complete the work programme detailed in (b) below;
or
surrender the permit.
(b) within 30 months of the commencement date of the permit:
i drill one exploration well to a minimum depth of 2,500
metres, or to an approved objective and/or depth unless
geological or engineering constraints encountered whilst drilling
make this unreasonable; and
either
submit, for the approval of the Secretary of Commerce, an ongoing
work programme for the remainder of the permit term;
or
surrender the permit.
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THIRD SCHEDULE
PETROLEUM EXPLORATION PERMIT (PEP) 38716
Terms indicated in bold type in the following conditions are
defined in Chapter 7 of the Minerals Programme for Petroleum (1
January 1995).
1. The permit holder shall pay any fees as prescribed in
accordance with the relevant petroleum regulations.
2a The permit holder shall be liable for the calculation and
payment to the Crown of a royalty equal to 5 percent of the NET
SALES REVENUES from the permit, calculated in accordance with
Chapter 7 of the Minerals Programme for Petroleum (1 January
1995), for any period for which a ROYALTY RETURN must be provided
in respect of all petroleum obtained under the permit which is
either sold or used in the production process as fuel or is
otherwise exchanged or removed from the permit without sale, or
remains unsold on the surrender, expiry or revocation of the
permit, except as provided in paragraph (b) below;
b. No royalty shall be payable in respect of:
i any petroleum that, in the opinion of the Minister, has been
unavoidably lost. This includes petroleum that has been flared
for safety reasons, or flared as part of an approved testing
programme, and
ii any petroleum which has been mined or otherwise recovered
from its natural condition, but which has been returned to a
natural reservoir within the area of the permit.
c. Where the exploration permit is exchanged for a mining
permit it shall be a condition of that permit that the permit
holder shall calculate and be liable to pay the higher of either
5 percent of the NET SALES REVENUES or a 20 percent ACCOUNTING
PROFITS ROYALTY in respect of any period for which a ROYALTY
RETURN must be provided in accordance with Chapter 7 of the
Minerals Programme for Petroleum (1 January 1995).
d. The permit holder shall provide to the Secretary a ROYALTY
RETURN for every period within the duration of the permit,
between a date for the commencement of a period and the next
following date for the expiry of a period. The initial period for
which a ROYALTY RETURN must be provided shall not commence before
the initial REPORTING PERIOD commencement date which will be
specified in accordance with paragraph (e) below (refer
paragraphs 7.30 to 7.33, Minerals Programme for Petroleum,
January 1995).
e. If exploration under the permit results in petroleum
production on which a royalty is payable, then the Minister may,
after consultation with the permit holder, amend the conditions
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of the permit in accordance with section 36 of the Crown Minerals
Act 1991, to specify a 12 monthly REPORTING PERIOD, except that
the initial period for which the ROYALTY RETURN must be provided
may be a shorter period commencing on a specified date.
f. The ROYALTY RETURN shall be in the prescribed form and in
accordance with paragraphs 7.35 to 7.38 of the Minerals Programme
for Petroleum (1 January 1995). Each ROYALTY RETURN shall be
accompanied by a written statement from an AUDITOR, in the form
prescribed in relevant regulations.
g. The POINT(S) OF VALUATION for calculating NET SALES REVENUES
shall be defined by the Minister, in consultation with the permit
holder, at the time of granting a mining permit or in respect of
an exploration permit, by written notice given by the Minister to
the permit holder within 30 working days, or such other time as
shall be notified to the permit holder, after the time when
production of petroleum under the permit commences. In setting
the POINT(S) OF VALUATION the Minister will Programme for
Petroleum (1 January 1995).
h. All costs and prices used in determining petroleum royalties
liabilities shall be the result of ARM'S LENGTH transactions.
Where any transactions are not at ARM'S LENGTH, the ARM'S LENGTH
VALUE of costs and prices used shall be such amount as is agreed
between the permit holder and the Minister or, in the absence of
agreement within such period as the Minister allows, shall be
such amount as is determined by the Minister to be the value. The
Minister, in determining the ARM'S LENGTH VALUE shall have
regard, but is not limited to the criteria set out in paragraph
7.27 of the Minerals Programme for Petroleum (1 January 1995).
i. Where NET SALES REVENUES for any quarter in a REPORTING
PERIOD, or a lesser period for which a ROYALTY RETURN must be
provided, are $250,000 or more, the permit holder shall make an
interim royalty payment to the Secretary, of 5 percent of the NET
SALES REVENUES for the quarter or lesser period, within thirty
calendar days after the end of the quarter or lesser period.
Where the permit holder is a partnership, joint venture or
otherwise made up of two or more parties, the interim payment due
may be made by each of the parties paying an agreed share.
j. Upon completion of the ROYALTY RETURN for a period, if there
is a balance of royalties payable net of interim payments made in
respect of the period, the permit holder shall be required to pay
the balance within 90 days following the end of the period. If
upon completion of the ROYALTY RETURN, the total of interim
payments exceeds the amount of the royalties due for the period,
the overpayment of royalties shall be refunded or may, at the
request of the permit holder, be applied against future
liabilities.
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k. The permit holder shall, for the purposes of supporting the
ROYALTY RETURN, keep for ten years or until the expiry of the
permit, whichever occurs first, proper books of account and
records maintained in accordance with accepted business practice.
The Secretary may require the permit holder to provide detailed
records and supporting information to explain any aspect of the
ROYALTY RETURN.
PETROLEUM EXPLORATION PERMIT 38716
PERMIT ENDORSEMENT
Action: Durum Energy (NZ) Limited changed its name to PEP
38716 Limited.
Date: 24 July 1997.
Certified true and correct
/s/ Clyde Bennett
For Unit Manager Permitting
24/7/1997
PERMIT ENDORSEMENT
Permit: PEP 38716
Action: In terms of section 41 of the Crown Minerals Act
1991, and acting under delegated authority from the Minister of
Energy of 7 October 1991, the Secretary of Commerce has approved
the assignment of Indo Overseas Explorations Limited's entire
interest in the permit to Durum Energy Corporation, Durum Energy
(NZ) Limited and Indo-Pacific Energy (NZ) Limited.
Date: 19 August 1997
Details: The participating interests in this permit are as
follows:
Marabella Enterprises Limited 52.80 percent
Indo-Pacific Energy (NZ) Limited 17.40 percent
Durum Energy (NZ) Limited 15.00 percent
Euro Pacific Energy Pty Limited 8.80 percent
Durum Energy Corporation Limited 6.00 percent
Certified true and correct
/s/ Clyde Bennett
Clyde Bennett
For Unit Manager Permitting
21/8/1997
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PETROLEUM EXPLORATION PERMIT 38716
PERMIT ENDORSEMENT
Action: Durum Energy (NZ) Limited changed its name to PEP
38716 Limited.
Date: 24 July 1997
Certified true and correct
/s/ Clyde Bennett
Clyde Bennett
For Unit Manager Permitting
15/10/1997
CERTIFICATE OF CHANGE OF CONDITIONS
IN THE MATTER of the Crown
Minerals Act 1991
AND
IN THE MATTER of Petroleum
Exploration Permit 38716 in the name of
Marabella Enterprises Limited, Indo-
Pacific Energy (NZ) Limited, PEP 38716
Limited, Euro-Pacific Energy Pty Limited
and Durum Energy Corporation Limited.
PURSUANT to section 36(1) of the Crown Minerals Act 1991, and
acting under delegated authority from the Minister of Energy of
20 January 1998, the conditions specified in the second schedule
to the above mentioned permit are hereby replaced with those
attached to this certificate.
DATED at Wellington this 23rd day of April 1998
SIGNED by Barrie John Fowke, Manager Crown Minerals
/s/ Barrie John Fowke
SECOND SCHEDULE
PETROLEUM EXPLORATION PERMIT (PEP) 38716
1. The permit holder shall make all reasonable efforts to
explore and delineate the petroleum resource potential of the
permit area, in accordance with good exploration and mining
practice.
2. The permit holder shall comply with the work programme as
detailed below.
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3. The following programme of work shall be undertaken by the
permit holder:
(a) within 18 months of the commencement date of the permit:
i reprocess and interpret 250 kilometres of existing seismic
data utilising PMPS/DMO techniques as appropriate;
ii acquire, process and interpret 30 kilometres of new seismic
data;
iii acquire aeromagnetic data sufficient to support 3D
modelling; and
either
make a firm commitment by notice in writing to the Secretary
of Commerce to complete the work programme detailed in (b) below;
or
surrender the permit.
(b) Prior to 31 October 1998:
i drill one exploration well to a minimum depth of 2,500
metres, or to an approved objective and/or depth unless
geological or engineering constraints encountered whilst drilling
make this unreasonable; and
either
submit, for the approval of the Secretary of Commerce, an ongoing
work programme for the remainder of the permit term;
or
surrender the permit.