Ann: Share Purchase Plan Oversubscribed, page-202

Hey mate, yep all resolutions passed with approx. 94-95% approval.

Robin and John kicking in about $50k each, **riel $25k and Paul Chimbodza approx. $400k of own funds.

There were x3 gents in the AGM with geo back grounds, so they could provide some better detailed info on the technical aspects, but for me the important points:

• Partner vs sole risking – They need a partner with a sizeable balance sheet to assist with becoming a producer. With some of the larger firms interested now, although their teams would add value, progress and timelines would be restricted as we don’t have the ability to make decisions and act quickly. Some of the smaller firms looking to farm in now can provide funding now, but would be of no use later once we look to become a producer. They will reassess post Mukuyu 2 where we are expecting success.
• Monetization – Following a successful drilling campaign, we would be looking to commence monetizing the asset (Potentially as early as next year) In terms of oil, they would look to begin extracting barrels and trucking them out locally and to Mozambique to get some cash flow going. For the gas, they are looking at gas to power to feed into local and SA infrastructure. It was noted the gas looks high quality and wouldn’t require much in terms of processing / refinement for the market.
• Seismic – Currently clearing lines and should be kicking off next week. They will be getting live data again and the shallower targets look to be more oil prone. Then will then make the call if one of the shallower targets in the plane will be drilled next or if they will drill one of the basin margin targets
• Drilling – August is the target pending confirmation of the drilling services contractors, who need approx. 60 days to mobilise. He said they anticipate drilling will take approx. 45-55 days.
• Hole deterioration and differential sticking – Scott wasn’t too concerned about this for Mukuyu 2. First time around then went in significantly overbalanced which led to a number of issues. This time around they will tweak the mud design to suit the appropriate conditions, although I don’t believe they will utilise synthetic based mud (SBM).
• Testing – They would be looking to suspend the well and design the appropriate test. Believe the test will happen next year, they may run liner then perforate.
• Baker – They have reached a settlement with them on the final numbers. Had an absolute nightmare with them, lying to their faces about what tools were onsite, QA checks non-existent, equipment damage during transport etc. Scott mentioned one of the tools had been in a box since 2015 and hadn’t been tested or checked before arriving onsite.

I had to leave early and didn’t get to ask about the PSA or carbon project, apologies!