If Santos does not withdraw within 60 days of the end of the Phase-1 work period, which is yet to occur, then Santos must drill a minimum of two exploration wells.
In addition to its right to withdraw within 60 days of the end of the Phase-1 work period Santos has the right to elect to withdraw from the farm-in agreement by giving notice to that effect to DWM within the 60-day period following the completion of the second exploration well.
Santos is in discussions with Caspian Oil & Gas in relation to the refurbishment of a drilling rig currently in the Kyrgyz Republic. Up to four shallow exploration prospects have been identified for drilling by the Caspian rig, beginning in the fourth quarter of 2008. In addition, up to four deep prospects are planned for drilling in 2009.
