Flares, page-22

Reminder of the big picture, all y’all

Joel R’s interview with Chuck Yates is fairly revealing on their thinking:

- early on they knew that they needed operational control - they now have this on 2 million acres (although he didn’t say that Sheffield has the final say on each DSU in the JOA)

- they are keen to control the rate of development to avoid over supply as happened in the US

- depth is very very important - as we go deeper, we get over pressure of 0.6 psi/ft, better porosity, better permeability, thicker sections (up to 450 ft) , stacked shakes of up to 4 zones (Shenandoah is much better than the East)

- geology is not complex - 1.2bn old algae = uniformity / consistency of section across whole 5 million acres (but not same pressure)

- TBN’s geo (ex Pioneer Permian) Donny Loughry developed consistency thesis which pointed towards SS1 being much more prospective than Amungee due to depth and thicker sections

- if TBN did not have 100% control, stepping out 50 miles south of Amungee might not have happened - partners were nervous, including Sheffield; Sheffield’s team has a lot of scar tissue from the complexities of Midland shale > v nervous about step outs

- SS1 has been recognised as the best result to date in the Beetaloo and met all expectations of their thesis > validated our regional geology thesis

- from 2026 they are aiming to minimise the number of wells by drilling up to 25,000 ft laterals - that will mean they need less than 100 wells to get to 2 bcf/ day

- they are also going to aim for tighter spacing, increasing frac pressure up to 4000 pounds per ft, cube design per Exxon (2 or more sections at a time)

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Got the best rocks.

Got the best team.

Got the $$$.

Got the first GSA.

Got the pollies.

Got an energy crisis comin’.