Any movement at the station?, page-3

Hi Sally,

MEL's only assets are Vali/Odin so there isn't a heap to report. That said there has been a fair bit going on.

- Glennnon Capital took control of MEL in August as they are MEL's No.1 SH and only debt provider. When they took control they comitted to funding MEL thorough to positive production cashflow.
- MEL recently announced production across Odin and Vali of around 6.5 mmscf/d. MEL should be cashflow positive on this production. The Vali field is only marginally producing and needs work. There is enough cash from operations to fund this work.

Glennon took a risk stepping in to fund MEL through to Odin-2 when MEL couldn't get funding itself. Odin-2 is producing and that risk has paid off for Glennon. MEL now has cashflow to address Vali operations and fund there share of the next drill Odin-3.

Glennon will want sell down or sell out of MEL at some point. The fact that MEL can is now largely self supported takes some of that pressure off. Glennons breakeven on their shareholding is around 1.5c.

To quote Tony Blair , "There is a lot done, a lot more to do and a lot at stake". Feel free to message me Sally, I'm a bit of a MEL tragic and happy to discuss.