OT04743 | PRT: administration: informal claims - procedures

LB Oil & Gas will operate the informal claim arrangements in the circumstances described above if a company complies with the following procedures:

• An informal claim should be in the form of the claim that is to be submitted and the expenditure being ‘informally claimed’ should be specified.

• When formal claims are submitted for informally agreed expenditure the specific items of expenditure already claimed informally and the relevant informal claim must be identified.

• The company accepts that errors in informal claims will be treated as if they were errors in formal claims.

• LB Oil & Gas will review an informal claim and notify the company of any expenditure which will be allowed without enquiry when the relevant formal claim is submitted. LB Oil & Gas will raise any enquiries that may be necessary to allow a view to be taken.

• Notification that the expenditure will be allowed on receipt of a formal claim does not entitle a participator to deduct any of the expenditure in arriving at payments on account on Form PRT6.