drilling or other operations (including seismic) conducted prior to the development phase on our North
Platte project, and (ii) our costs for any additional exploration or appraisal wells apart from our North
Platte project. We act as operator on behalf of the alliance through the exploration and appraisal
phases of development. Upon completion of appraisal operations, operatorship will be determined by
Total and ourselves, with the greatest importance being placed on majority (or largest) working interest
ownership and the respective experience of each party in developments which have required the design,
construction and ownership of a permanently anchored host facility to collect and transport oil or
natural gas from such development.
General Information—West Africa
Our West Africa operations include appraisal and development activities on our discoveries as well
as the exploration of oil-focused prospects targeting pre-salt geologic horizons in the Kwanza basin
offshore Angola and the South Gabon Coastal basin offshore Gabon.
Geologic Overview
Offshore Angola and Gabon are characterized by the presence of salt formations and oil-bearing
sediments located in pre-salt and above salt (Albian) horizons. Given the rifting that occurred when
plate tectonics separated the South American and African continents, we believe the geology offshore
Angola (Kwanza Basin) and Gabon (South Gabon Coastal Basin) is an analog to the geology offshore
Brazil where several pre-salt discoveries are located. The basis for this hypothesis is that 150 million
years ago, current day South America and Africa were part of a larger continent that broke apart. As
these land masses slowly drifted away from each other, rift basins formed. These basins were filled with
organic rich material and sediments, which in time became hydrocarbon source rocks and reservoirs. A
thick salt layer was subsequently deposited, forming a seal over the reservoirs. Finally the continents
continued to drift apart, forming two symmetric geologic areas separated by the Atlantic Ocean. This
symmetry in geology is particularly notable in the deepwater areas offshore Gabon, Angola and the
Campos Basin offshore Brazil. From an exploration perspective, we believe this similarity is very
meaningful, particularly in the context of pre-salt Brazilian discoveries and our recent pre-salt
discoveries at Cameia, Lontra, Mavinga, Bicuar, Orca and Diaman.
Plans for Appraisal and Development
In general, the life-cycle of our major project developments begins with a thorough evaluation and
analysis of well logs, reservoir core samples, fluid samples and, in some cases, the results of production
tests from the initial exploration well that encountered what we believe may be commercial
hydrocarbons. This information, along with relevant seismic data, is used to generate locations and
plans for appraisal and development wells. In Angola, there are also important regulatory approvals we
must obtain from Sonangol throughout the project development life-cycle. For example, under the
terms of our applicable licenses in Angola, following a successful exploration well we are required to
file a declaration of commercial well with Sonangol, which we have done with respect to our
Cameia #1, Mavinga #1, Lontra #1, Bicuar #1A, and Orca #1 exploration wells. Under the terms of
our applicable licenses in Angola, we have two years from our declaration of commercial well to
declare a commercial discovery, unless otherwise agreed by Sonangol. On February 28, 2014, we
submitted a formal declaration of commercial discovery to Sonangol with respect to our Cameia
project. Depending upon the project, we may choose to drill one or more appraisal wells, each of which
will undergo thorough analysis and evaluation. Once we file a declaration of commercial discovery with
Sonangol, we have three months to file a development plan with Sonangol for approval. On May 28,
2014, we submitted the initial integrated field development plan for our Cameia project on Block 21
offshore Angola for approval by Sonangol and the Angola Ministry of Petroleum. The development
plan will include economic assumptions on the costs and timeline for drilling and completing
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