Ann: Appendix 3Y - D McArthur, page-26

good time to let a few go!!


Xstate Managing Director, David McArthur commented:

“The stage is now set for the drilling of a very significant exploration well for Xstate. Borba is a
very low risk gas prospect with high upside immediately adjacent existing gas infrastructure.
Success in intersecting gas at Borba 1‐7 has the potential to transform the company almost
instantaneously. An independent estimate of 70% chance of success means there must be high
confidence in the quality, quantity and controls of the all the technical inputs required for geological
success. This well, plus our growing Canadian oil production business puts Xstate on a very solid
footing early in 2021.