Ann: Announcement to Option holders, page-43

Hi,

If you want to be a serious shareholder in BAS (as opposed to just trying to buy at 2 and sell at 3etc) then you should go back and line up the last 6 -8 quarterlies and in excel do the maths. I've just done the last 6 quickly and what I can tell you is:

The revenue they say at the top of the quarterly never appears to hit the 5B below. Even when I put into account timing issues, payment terms of 60-90 days etc I can't make it work - and I'm an accountant. I believe this is the DMO effect which takes a fair heft of the top. If you go back pre covid to Dec 19 when they had the new well at flush production even with 26k own share at $62 a barrel they only had cash flow of $447k which then got wiped out by $601k investment costs, which was most probably the last part of the well cost, but they had $640k in the bank, Then in Q1 oil price is $48, they cut back admin costs and investments of 168k dwarf net cash from production of 78k so cash in bank falls to 540k. The story continues into Q2, Q3, Q4 and even the next Q1 where net cash from operations is -202k, +14k, -23K and +16k, so I'm not sure how Tino says that they have costs per barrel under $20 as it doesn't show through here. then you add in the investment costs of -26k, -81k, -79k and -49k and you can see how in six quarters they have gone from $640k in the bank to $110k in the bank - and the worst side is they need to drill another well for which they have no $.

Probably the best table to look at is from their 2019 annual report issued on 1st April 2020 at 10am in the morning... It shows the last 4.5 years (incl one six month year) that they have a history of losing money every year, and I can't see this current year being kind to them.