Ann: Appendix 4E and Annual Report 31 December 2015, page-2

Didn't expect any great revelations from the report & got what I expected.

The financials we've mostly seen in the Quarterly, though their was an impairment charge of $14.6m against Blue Ridge. This along with the depletion cost are accounting values that don't affect the cash balance.

Not sure if they've leased more acreage, as they now say 5128 acres, they announced 4700 in Jan. They go on to say "We will be continuing to pursue the funding for development and the capture of additional acreage in this area" So sounds like they will be funding this outside of their credit facility. Presumably they'd also include the acreage already leased, reimbursing their coffers.

Good news having 1P reserves attributed to this acreage. They paid $4.1m for the 4700 acres or $870 acre, 1P reserves in the better areas of the Permian & Eagle Ford are presently around $15 boe, and above $10,000 per acre. The 1P reserves of 2.9mmboe @ $15 equals $43m. Using the acreage value works out to a similar figure. I know I'm getting ahead of myself as we don't even know where it is, however only the best (less than 5%) of acreage is profitable at current prices. (reserve reports look at current prices to determine the reserve) Nothing conclusive, but it does add weight to the suggestion they got a good deal. It's not too hard to find prices paid for acreage/reserves here's one current link http://press.ihs.com/press-release/...ities-driving-consolidation-top-performing-pe

Mrs Henrich still has 25.6m shares. She had about 27.3m when they ceased to be substantial holders, so have sold 1.7m since November 10. Still selling, at least at a lower rate.