Common use of Discovery and Appraisal Clause in Contracts

Discovery and Appraisal. (a) In case of a Discovery, Contractor shall comply with the rules and procedures applicable to such Discovery, Appraisal and, if applicable, declaration of a Commercial Discovery, as stipulated below. (b) Contractor shall, upon Discovery, give notice in writing to ANPM of such Discovery within twenty-four (24) hours. (c) As soon as reasonably practicable after a Discovery is made, and in any event no later than thirty (30) Days following the submission of the notification pursuant to Article 4.10(b), the Contractor shall: (i) submit to ANPM all information in relation to the Exploration work which lead to the Discovery, as well as any other additional information ANPM may reasonably request; and (ii) advise ANPM of whether or not the Discovery merits Appraisal. (d) If the Contractor is of the opinion that the Discovery merits Appraisal, it shall, within thirty (30) Days following the notification of Article 4.10(b), prepare and submit to ANPM for approval a proposal of Appraisal Work Program and Budget, Appraisal Period included. (e) The Appraisal Work Program and Budget should be updated on an annual basis, if deemed convenient, being such updates subject to ANPM’s approval. (f) The objective of the Appraisal Work Program is to enable Contractor to assess whether or not the Discovery is, either on its own or in combination with other Discoveries, a Commercial Discovery. (g) ANPM may grant an extension of the Appraisal Period where Contractor has evidenced to ANPM’s satisfaction that the Appraisal has been conducted in accordance with the Appraisal Work Program and Budget and that further Appraisal works are required to determine whether or not the Discovery is a Commercial Discovery. In any case, the Appraisal Period cannot, in any circumstances, exceed a maximum of two (2) Contract Years. (h) Unless otherwise agreed with ANPM, Contractor is required so submit a report to ANPM stating its opinion on whether or not the Discovery is a Commercial Discovery by no later than one hundred and eighty (180) Days as of the date of completion of the Appraisal Work Program. (i) The report mentioned in Article 4.10(h) above must include: (i) the underlying reasoning of Contractor’s opinion; (ii) all data and information Contractor took into consideration in making its assessment on the existence or not of a Commercial Discovery; (iii) all the studies carried out or which are planned to be carried out in order to assess if the Discovery is or can become a Commercial Discovery; (iv) whenever applicable, Contractor’s proposal on whether or not the relevant portion of the Contract Area should be declared a Development Area; and (v) any other information that may be required by ANPM.

Discovery and Appraisal. (a) In case of a Discovery, Contractor shall comply with the rules and procedures applicable to such Discovery, Appraisal and, if applicable, declaration of a Commercial Discovery, as stipulated belowset forth in Article 23 of the Decree-Law. (b) Contractor shall, upon Discovery, give notice in writing to ANPM of such Discovery within twenty-four (24) hours. (c) As soon as reasonably practicable after a Discovery is made, and in any event no later than thirty (30) Days following the submission of the notification pursuant to Article 4.10(b), the Contractor shall: (i) submit to ANPM all information in relation to the Exploration work which lead to the Discovery, as well as any other additional information ANPM may reasonably request; and (ii) advise ANPM of whether or not the Discovery merits Appraisal. (d) If the Contractor is of the opinion that the Discovery merits Appraisal, it shall, within thirty (30) Days following the notification of Article 4.10(b), prepare and submit to ANPM for approval a proposal of Appraisal Work Program and Budget, Appraisal Period included. (e) The Appraisal Work Program and Budget should be updated on an annual basis, if deemed convenient, being such updates subject to ANPM’s approval. (f) The objective of the Appraisal Work Program is to enable Contractor to assess whether or not the Discovery is, either on its own or in combination with other Discoveries, a Commercial Discovery. (g) ANPM may grant an extension of the Appraisal Period where Contractor has evidenced to ANPM’s satisfaction that the Appraisal has been conducted in accordance with the Appraisal Work Program and Budget and that further Appraisal works are required to determine whether or not the Discovery is a Commercial Discovery. In any case, the Appraisal Period cannot, in any circumstances, exceed a maximum of two (2) Contract Years. (h) Unless otherwise agreed with ANPM, Contractor is required so submit a report to ANPM stating its opinion on whether or not the Discovery is a Commercial Discovery by no later than one hundred and eighty (180) Days as of the date of completion of the Appraisal Work Program. (i) The report mentioned in Article 4.10(h) above must include: (i) include the underlying reasoning of Contractor’s opinion; (ii) all information, documents and data and information Contractor took into consideration required in making its assessment on the existence or not of a Commercial Discovery; (iii) all the studies carried out or which are planned to be carried out in order to assess if the Discovery is or can become a Commercial Discovery; (iv) whenever applicable, Contractor’s proposal on whether or not the relevant portion Article 23.10 of the Contract Area should be declared a Development Area; and (v) any other information that may be required by ANPMDecree-Law.