15Trillion Cubic feet of Prospective resource – massive upside...

15Trillion Cubic feet of Prospective resource – massive upside for Conrad

Fewif any listed ASX companies have this much exploratory upside. Companies likeWoodside, Oil Search and Santos have become big companies on the back of largegas resources – not oil !!.

Thisis an unrisked number and if we apply historical success rates in that area of66% it equates to some 10 tcf of risked resources or 1.7 billion bbls of oilequivalent.

Theexploration success rate of 66% in that area is based on old 1960’s and 70’s 2Dseismic. Modern 3D seismic should improve this success rate. Assuming 50%working interest for future dilution delivers a risked value of $5/boe equals$8.5b net to Conrad or a range of $5-10 bn. This does not include the shallowwater discoveries or the exploratory potential. This potential allresides in an area where we have 4 discoveries already – hence high probabilityof success.

Ofparticular note is that these gas prospects are all located in a geologicalforearc. The biggest gas discoveries in the world in recent times have beenmade in the forearc area in the East Mediterranean (Egypt, Israel, Cyprus,Turkey). What Conrad has in its Aceh Forearc Basin is truly world-class.

Attachedlink on East Med Gas

https://www.offshore-technology.com/features/timeline-game-changing-gas-discoveries-eastern-mediterranean/?cf-view