Where is Lanman when you need him? :)

Paul, the answer to your question is that Exxon obligated to move to phase-2 by the end of year the latest.

“ExxonMobil shall use reasonable efforts to commence the field operations under the Initial Work Program in a reasonable and workmanlike manner within four (4) months from the date of this Agreement, subject to availability of equipment and services. ExxonMobil shall use reasonable efforts to complete the Initial Work Program within twelve (12) months after the commencement of the Initial Work Program, subject to availability of equipment and services (the “Initial Work Program Completion Date”).”

Date of agreement April 10 2008…plus 4 months to start of Initial Work ProgramAugust 2008….plus 12 months to complete Initial Work Program August 2009…

Exxon has 120 days or 4 months to move to phase-2, that brings them to the end of the year.

“Option to Proceed With Appraisal Work Program. ExxonMobil may elect to proceed to the next phase of operations by providing written notice (the “Appraisal Option Notice”) to Falcon within 120 days after the Initial Work Program Completion Date. If MOL has elected to withdraw and ExxonMobil elects to continue after the Initial Work Program Completion Date, ExxonMobil shall assume all obligations under the Initial Participating Interest. A failure to provide the Appraisal Option Notice within said period shall be deemed to be an election not to proceed with said next phase of operations. If ExxonMobil provides the Appraisal Option Notice, the next phase will be a mutually acceptable appraisal program (the “Appraisal Work Program”), as described in Section 12, below.”

However, Exxon also has the following option….

“ExxonMobil may elect to proceed to the Appraisal Work Program prior to completing the Initial Work Program by providing written notice of such early election. In either event, ExxonMobil’s obligations under the Appraisal Work Program shall commence upon Falcon’s receipt of such notice.”