Ann: Borba and Production Update, page-63

Hi all.
We are all disappointed with the results, no more that GJ however this is exploration in the oil industry, a roller coaster which is exciting and scary. Let’s not look at what we don’t have and have a discussion what we have.

The Kione zone is the primary producing zone in the basin so the confidence in a commercial flow rate should be high. The key point from my chair is that the tie in point is so close which is so important for us all. A quick tie in and flow should generate cashflow in a quarter or two. Commerciality is a function of flow rate but also the time and cost to get it to market and we have the second point covered for sure.

We should be thankful that GJ, a savvy oilman, knew not to put all is eggs in one basket (an Easter pun) but also diversified into oil production. Their acquisitions have not been valued in the company as the hype of Borba has been the headline. Once we see the cash from Canada we are in for a material re rate

as always DYOR

The Captain