Draft Projections Clause Samples
The Draft Projections clause outlines the process and expectations for providing preliminary estimates or forecasts related to a project or agreement. Typically, this clause specifies the format, timing, and scope of the projections, such as anticipated costs, timelines, or deliverables, and may clarify that these figures are non-binding and subject to revision. Its core practical function is to facilitate informed planning and decision-making by giving all parties an initial understanding of potential outcomes, while also managing expectations and reducing disputes over preliminary figures.
Draft Projections. 7.5.1 The Company shall (in consultation with the Technical Bank and the Agent):
(A) in the case of any Projection other than a Disposal Projection, prepare a draft Projection using:
(1) all the Assumptions that have been agreed between the Company and the Agent or Technical Bank pursuant to Clauses 7.4.2 and 7.4.3 (Preparatory steps); and
(2) to the extent that the Company and the Agent or Technical Bank, as appropriate, have not been able to reach agreement on any such Assumptions, such Assumptions as determined in accordance with Clauses 7.4.2 or 7.4.3 (Preparatory steps); and
(B) in the case of any Disposal Projection, prepare a draft Disposal Projection:
(1) on the basis that the relevant Borrowing Base Asset(s) have ceased to be so designated; and
(2) otherwise using all of the Assumptions that were used for the purposes of the then current Projection which the relevant Disposal Projection is intended to supersede.
7.5.2 If the Company has made a request under Clause 7.10 (Asset base) then, at the Technical Bank’s option:
(A) the draft Projection shall be prepared on the basis that the relevant Petroleum Asset(s) have been designated as Borrowing Base Asset(s) and/or as the case may be, the relevant Borrowing Base Asset(s) have ceased to be so designated; or
(B) the Company (in consultation with the Technical Bank) shall prepare:
(1) a draft Projection on the basis that the relevant Petroleum Asset(s) have been designated as Borrowing Base Asset(s) and/or, as the case may be, the relevant Borrowing Base Asset(s) have ceased to be so designated; and
(2) a further draft Projection on the basis that no new Petroleum Asset(s) will be designated as Borrowing Base Asset(s) and no current Borrowing Base Asset(s) will cease to be so designated.
7.5.3 If the Company has made a request under Clause 7.1.1(B)(2)(a) (Adoption), the draft Projection shall be prepared on the basis that the relevant Petroleum Asset(s) have been designated as Borrowing Base Asset(s).
7.5.4 The Company and the Agent will endeavour to ensure that each draft Projection is delivered to each Lender no later than 14 days prior to the Recalculation Date on which such Projection is due to be adopted.
7.5.5 Each draft Projection must be accompanied by details of the conditions (“CPs”) (if any) that the Technical Bank and Agent consider necessary to be satisfied in order for (if the Company has made a request under Clause 7.10.1 (Asset base) or the draft Projection is being prepared pursuant t...
Draft Projections. The Technical Bank shall prepare a draft Projection using: