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EXHIBIT 99.2
AMG Oil, (NZ) Ltd.
000 Xxxxx" Xxxx
XX Xxx 00000 Tel: (64-4-476 2717)
Wellington Fax: (64-4-476 0120)
New Zealand xxxx.xxxxxxx@xxxx.xx.xx
Director
Trans-Orient Petroleum (NZ) IA.
Director
Indo-Pacific Energy (NZ) Ltd. 3 December 1998
Dear Sirs
AMG 0ption PEP 38256
Under an agreement dated 25 June 1998, AMG Oil (NZ) Ltd.(then Trans
New Zealand Oil agreement holds the option (the "Drilling 0ption"
acquire an additional 25% equity in PEP 38256 from each of the Trans-
Orient Petroleum (NZ) Ltd. and Indo-Pacific Energy (NZ)Ltd. by agreeing
to fund the drilling costs of two exploration xxxxx. The agreement
requires this option to e exercised by AMG Oil (NZ) Ltd. by 8 December
1998.
Due to delays in processing the new seismic data acquired in the permit
during 1998, and in obtaining and reprocessing existing data, none of
the optionee or optionor companies has, at this adequate opportunity to
assess the information acquired, and make rational decisions ongoing
exploration.
AMG Oil (NZ) Ltd. therefore requests the optionors, Trans-Orient
Petroleum (NZ) Ltd. and Indo-Pacific Energy (NZ) Ltd. to extend the
date on which the Drilling Option be exercised, to October 31, 1998.
In order to maintain this option AMG Oil (NZ) Ltd. mill fund all
ongoing costs including any further seismic prior to the exercisable
date, and the cost of an independent analysis of the permit area
commissioned by the Joint Venture from the Natural Hazards Research
Centre of the University of Canterbury. This report is expected to be
completed in early February. It incorporates the existing seismic data
with field mapping of the area completed over recent years by members
of the University of Canterbury and is being conducted by Xx. Xxxxxxx
Xxxxxxx, with overview provided by Professors Xxxx Xxxxxxxx and Xxxxxxx
Xxxxxxxx. It is expected that this report will provide a clearer basis
for all parties to consider ongoing exploration work in PEP 38256.
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Should this extension of the exercise date of the Drilling Option be
acceptable to Trans-Orient Petroleum (NZ) Ltd. and Indo-Pacific Energy
(NZ) Ltd., please countersign in. the spaces provided below.
Yours sincerely,
/s/ X. X. Xxxxxxx
X. X. Xxxxxxx
The extension of the Drilling Option exercise date on the basis stated
in this letter is acceptable to the signatories.
/s/ X. X. Xxxxxxx /s/ X. X. Xxxxxxx
Signature of Representative Signature of Representative
Director Director
Trans-Orient Petroleum (NZ)Ltd. Indo-Pacific Energy (NZ) Ltd.
/s/ X. X. Xxxxxxx
Signature of Representative
Director AMG Oil (NZ) Ltd.
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AMG Oil (NZ) Ltd
Xxxx-Xxxxxxx Xxxxx
000 Xxxxxx Xxxx
XX Xxx 00000 Tel: (64-4-476 2717)
Wellington Fax: (64-4-476 0120)
New Zealand xxxx.xxxxxxx@xxxx.xx.xx
Director Director
Trans-Orient Petroleum (NZ) Ltd Indo-Pacific Energy (NZ) Ltd
26 October 1999
Dear Sir,
AMG Option : PEP 38256
Under an amendment to an agreement dated 3rd December 1998, AMG Oil,
via its subsidiary AMG Oil (NZ) Ltd (then Trans New Zealand Oil Company
(NZ) Ltd) holds the option (the "Drilling Option"), to acquire an
additional 25% equity in PEP 38256 from each of the respective
subsidiaries of Trans-Orient Petroleum (NZ) Ltd and Indo-Pacific Energy
(NZ) Ltd, by agreeing to fund the drilling costs of two exploration
xxxxx. The agreement requires this option to be exercised by AMG Oil by
October 31 1999.
Due to delays in seismic processing the new seismic data acquired in
the permit during 1998, and in obtaining and reprocessing existing data
none of the optionee Or optionor companies has, at this time, had
adequate opportunity to assess the information acquired, and make
rational decisions regarding ongoing exploration. Some prospects and
leads have been identified, but it is likely that further seismic work
will be required before drilling in August 2000.
AMG Oil (NZ) Ltd therefore requests the optionors, Trans-Orient
Petroleum (NZ) Ltd and Indo-Pacific Energy (NZ) Ltd to extend the date
on which the Drilling Option be exercised, to 31 May 2000.
In order to maintain this option AMG Oil (NZ) Ltd. will continue to
fund its ongoing share of Joint Venture costs.
Trans-Orient Petroleum Ltd and Indo-Pacific Energy Ltd will indicate
their acceptance of the extension of the exercise date of the Drilling
Option by countersigning below.
Yours sincerely,
/s/ Jenni Lean
Jenni Lean Corporate Affairs Manager
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The extension of Drilling Option exercise date on the basis stated in
this letter is acceptable to the signatories.
Signature of Representative Signature of Representative
/s/ X. X. Xxxxxxx /s/ X. X. Xxxxxxx
Director of Trans-Orient Director, Indo-Pacific
Petroleum Ltd. Energy (NZ) Ltd.
/s/ X. X. Xxxxxxx
Signature of Representative
Director, AMG Oil (NZ) Ltd
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AMG Oil (NZ) Ltd
000 Xxxxxx Xxxx
XX Xxx 00000 Tel: (64-4-476 2717)
Wellington Fax: (64-4-476 0120)
New Zealand
To
The Directors The Directors
Trans-Orient Petroleum (NZ) Ltd Indo-Pacific Energy (NZ) Ltd
23 February 2000
Dear Sirs
AMG Option: PEP 38256
Under an amendment to an agreement dated 3rd December 1998, AMG Oil
Ltd, via its subsidiary AMG Oil (NZ) Ltd (then Trans New Zealand Oil
Company (NZ) Ltd) held an option (the 'Drilling Option'), to acquire an
additional 25% equity in PEP 38256 from each of the respective
subsidiaries of Trans Orient Petroleum (NZ) Ltd and Indo-Pacific Energy
(NZ) Ltd, by funding the drilling costs of two exploration xxxxx. The
agreement required this option to be exercised by AMG Oil by October 31
1999.
Two separate seismic surveys in 1998 and 1999 have identified various
prospects and leads in the permit area. However, further seismic data
will be required before a rational decision on whether and where to
drill can be made. The permit requires a well to be drilled by end of
August 2000.
AMG Oil (NZ) Ltd ("AMG") and the optionors, Trans-Orient Petroleum (NZ)
Ltd ("TRANS") and Indo-Pacific Energy (NZ) Ltd ("INDO") therefore
agreed to extend the date on which the Drilling Option be exercised, to
31 May 2000. This agreement was signed on 26 October 1999.
By this letter, AMG, INDO and TRANS now further agree that AMG will
fund an additional phase of seismic and other expenditure in the permit
to further define drilling targets, up to a revised option exercise
date which the parties hereby agree shall be set as 15' June 2000. This
is intended to allow sufficient time to acquire, process and interpret
a further round of seismic to be acquired over the Ealing, Arcadia and
Chertsey South Leads, in order to define one or more drilling targets.
The new option overrides all previous option agreements and is as
follows:
AMG has the option ('Option A') to earn an additional 50% in PEP 38256
(25% each from INDO and TRANS) by funding all expenditure including an
agreed program of seismic work leading up to and including the drilling
of two exploration xxxxx. Alternatively, AMG may, at its election, earn
an additional 35% in the permit by funding all work leading up to and
including the drilling of one exploration well ('Option B'). In the
event that AMG exercises Option B, it shall acquire a further option
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('Option C') to earn an additional 15% in the permit by funding all
further work up to and including a second exploration well on a
separate exploration target. Option C must be exercised within 30 days
of reaching Target Depth in the exploration well drilled pursuant to
exercise of Option B.
AMG may exercise one or other of Option A or Option B by advising INDO
and TRANS in writing of its election prior to close of business in New
Zealand, on Friday,16 June 2000. All exploration xxxxx shall penetrate
to the base of the Tertiary section, unless engineering considerations
make this impracticable; and the first exploration well shall be
drilled in a timely manner to meet the PEP 38256 permit work obligation
to drill a well by 25 August 2000.
The parties indicate their acceptance of the extension of the exercise
date of the Drilling Option, and the alteration to the terms of the
Drilling Option, as set out in this letter by countersigning below.
The extension and alteration of the Drilling Option exercise date on
the basis stated in this letter is acceptable to the signatories.
/s/ X. X. Xxxxxxx
Director, Indo-Pacific Energy (NZ) Ltd
/s/ X. X. Xxxxxxx
Director, Trans-Orient Petroleum (NZ) Ltd
/s/ X. X. Xxxxxxx
Director, AMG Oil (NZ) Ltd
