Ann: Transformational Drilling Program and Further Share Buy-Back, page-87

Obviously the reason why BRK didn't sell the who SWISH asset was  they didn't get an offer that wasn't a steal.

Monetisation via full sale was the preferred option early on, when PUD reserves well selling at 20-30% of NPV.  This was the benchmark for most tier 1  Anadarko basin sales for most of the mid 2010's . BRK actually sold 2 small land parcels in 2018 after they were HBP drilled where BRK were non operators. This gave them the confidence they could repeat this on a larger scale at SWISH.   An offer to BRK at the " benchmark would have brought in AUD$ 200-230 million.

But Covid and the exit of many PE players in that period reduced the number of buyers PUD reserves. Additionally, a lot of the remaining players like Camino, Citizen , Casillas  found drilling for development and cashflow more lucrative than drilling initial wells for HBP and flipping the acreage.

On March 1,2023, Camino sold it's SWISH acreage position  ( Stephens, Carter, Garvin counties )to CLR for cash. The asset included 12 drilled and operated multiunit DSU's for ~15,000 acres, multiple non operated producing wells and undrilled acreage. This means the  package was ~ 3 times the size of BRK in terms of operated DSU's excluding the non operated wells and acreage.



The price was hard to find as  its was a private sale to a private company. .. but in the CLR April quarterly we got this



and in August we got this



So basically, CLR picked up 12 operated DSU's HBP with wells like Sundance Kid and Billy the Kid for US$84 million, a NPV discount of 85% based of BRK's independently calculated NPV.

That would equate to BRK receiving ~US$29 million for their DSU's....a ludicrous proposition which I doubt would have been offered that low.  Even a price 3 times higher would still be not acceptable.

Camino sold out to CLR because CLR were buying all and sundry in the area so Camino couldn't expand their position which became non core. They decided they could redeploy their capital in the Anadarko merge , which is their core position. The SWISH was less than 1/3 of their holdings.

BRK at this stage have the SWISH as the core holding so maximising the return was paramount, for which selling wasn't an option.

Why no JV partner.... as was explained in the release, no of the many  potential partners could come up with a structure where they put in enough capital to exceed what BRK could achieve by  going it alone.. simple as that.

Chers

Dan