Ann: Business Update, page-6

I applaud Byron for issuing this update and recognising the cash flow difficulties they face, but it is worrying.

Who could have seen a $7.60 discount for Louisiana Light Sweet (LLS) compared to WTI (currently US$21) when LLS almost always commands a premium. If things stay that way it will significantly hurt Byron's cash flows and the value of their hedging, both based on LLS not WTI pricing.

Additionally, my recollection is that Byron has a contract with the Enterprise 264 to drill 4 wells before the end of 2020. Four wells will not be cheap and Byron may be locked in. I don't know this for sure and the update provides no definitive explanation, although hints that they can control this type of expenditure. Would be nice to know the answer.

On a positive note, good to see Byron is looking at delaying the installation and cost of the production platform, which could save valuable cash resources when really needed.