Ann: Kumbarilla Drilling Update, page-20

GasBaron

I don't know who your experts are but I believe that the statement that Galilee will need 40 to 100 Million and 3 years to find out if there are 500 PJ of 2P reserves is IMO completely wrong.

A modest fee will need to be paid to the Reserce Certifiers of course.

Please refer to the cut & pastes below for provenance.

The high permiability which is testing our patience is ultimately our friend because it will result in a much greater well spacing and the properties of the coals will reduce the field OPEX because of significantly reduced workover frequency.

We may even be able to replace ESP's with gaslift pumps to economically scavenge an incrementaly higher yield.

I have done an extensive modeling exercise on this field (80 MB of Spreadsheet Calcs) and am very encouraged by the economics of the field which may explain why a number of experianced investore are not selling.

Jemena are financing the pipeline under an MOU which has been referred to on multiple occasions on Galilee reports and are waiting in the wings with land approvals already done.

IMO the Galilee & Canaccord Genuity reports which are publicly available through the ASX clearly explain the path to reserve certification.

Hope this Clarifies things

Regards

OGP

Relavent Info...

From the December 2019 Quarterly Report

"The company will continue to optimise production from the, (Glenaras) Pilot over the coming months including increased surveillance of the current wells and the potential for drilling vertical monitoring wells to determine the extent of drawdown from the Pilot due to the high permeability we are experiencing.

Asuccessful Pilot achieving commercial gas rates has the potential to book 500PJ+ of Proved and Probable Reserves.

The Pilot will be on production for an extended period to de-water and lower the pressure in the surrounding coal to achieve gas flow."

And Canaccord Genuity Report 31 January 2020.