Ann: Operational Update - Reids Dome Progress, page-2

Well thats interesting, why stop drilling @882m when the predrill depth planned was 1200m. We know the coal is below 560m and they were coring ~150m so around 700m. Perhaps they think they have found enough to simply not continue? Serocold is a non core well, they are simply planning to drill to 1200m and wireline log. They were planning on testing 2 wells and have settled on Nyanda 4 re entry which may be a timing factor due to the wet, or as I have said before, I dont see how you can test for CSG when you have a conventional reservoir feeding the well so Aldinga testing for CSG is out. Also what depth will they drill Serecold too?. I suspect drilling below 882m has an exploration intent and perhaps now we are looking at a fast push to production so all 20 wells will presumably stop around the 800m mark. We will have 3 production wells already when Serocold is complete. The AGM is on the 12th, someone going needs to pin RC down and get his best estimate for contingent resource. Yesterday I posted the companies figures for their contingent (mean) resource @ 340PJ from March 2019, they have used a average net pay (coal thickness) of 17.1m to arrive @ this figure. Clearly on the announcement on the 4/11/19 the figure for Nyanda4 is 40.4m.(which hasnt changed fromMarch) plus an additional 25m of carbonaceous shale. IMO this brings their figure into the quite silly bracket .This figure is critically important so someone needs to bone up on my posted figures and ask the hard questions. @ $8 /GJ the EV of 500BCF is $4b. or $26 PS. @1TCF it is $52 PS. If the contingent resource is above 500BCF RC is not going to find it hard to convince 10% of SH to hold for 2 years to rejoice in the sort of dividends that that gross income can generate..This of course has major implications for TEG holders. Feral