Lockyer Deep - From the horse's mouth OR What the JV partner really thinks about Lockyer Gas, page-313

Suggest you refocus to the profile view of the Kingia sandstone.

* CE is about to/has already picked the pockets of NWE shareholders who have already accepted the offer should Lockyer Deep2 come in as the EMV analysis forecasts.

* You might recall that in 2Q 2019, STX/WGO's 65MMScf/d test of the Nth Erregulla discovery was described at the time as "staggering". Lockyer Deep #1 tested at 110 MMScf/d, the best well test in the history of the Perth Basin. Hancock energy just paid 38cps for WGO's 50%. Initial offer was ~20cps.

* I expect MIN to close the current offer (currently mid March) before Lockyer Deep #2 reaches target depth. If the well is an out and out success, he can then make a new offer of say 12-15c to the remaining shareholders and get full ownership before a three well programme in 2H 2023. In this case he does not have to make-whole the, say, 70-80% that had already accepted the initial offer, so it is not a lot of money to MIN in the scheme of things.

I cannot see MIN attaining 90% with a well result as close as it is, where is the downside: (1) Lockyer 2 disappoints - the chances that it is as lousy as the MIN bid is low; (2) Problems with the drilling - always possible - but as they have already drilled the structure, this is low also in opinion.