PetroFrontier Corp (PFC)

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Statoil Takes over Sept.1-

? Phase 1 & 2A (2013 and 2014):
o Statoil will spend the next US$50 million on exploration (PetroFrontier –
nil) and assume operatorship on September 1, 2013o At the end of Phase 2A, Statoil will have the option to continue to Phase
2B; if Statoil elects not to continue, it must return to PetroFrontier 50%
of its former WI in the Permits, such that ownership will then be: Statoil
(30%), PetroFrontier (70%)
? Phase 2B (2015):
o Upon proceeding to Phase 2B, Statoil will spend the next US$30 million
on exploration (PetroFrontier – nil)
o At the end of Phase 2B, Statoil will have the option to continue to Phase
3; if Statoil elects not to continue to Phase 3, then it must return to
PetroFrontier 25% of its former WI in the Permits, such that ownership
will then be Statoil (55%), PetroFrontier (45%)
? Phase 3 (2016):
o Upon proceeding to Phase 3, Statoil will spend the next US$80 million on
exploration (PetroFrontier – nil)
o At the end of Phase 3, Statoil will own 80% and PetroFrontier will own
20% of PetroFrontier’s former WI in the Permits
At the end of Phase 3, Statoil will have completed its funding obligations under the
Amended Farmin Agreement and the sharing of future costs between Statoil and
PetroFrontier will be based on their then respective ownership interests.

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