Ann: Byron Corporate Update, page-27

You are joking right ibis89, no they said they were always going to fund the next low risk drill (low risk/low reward/low contribution to cashflow and reserves) but the real cashflow and excitement was to come from drilling G#3/G#4 which is not happening at this stage. The comments in the next quarterly will be very telling i think they will struggle to even fund the near term E#2 well from cashflow as highlighted they still have to pay back $3.5M prepayment from a hedging counterpart, pay the $3.4M owning from delayed SM#58 drill costs and pay the $20 PHA.

- The company had no reason to disclose they were looking for a refinance i trust they truly thought they could pull off a refinance to speed up drilling of G#3/G#4. They have received resounding market feedback that no one wants to extend further capital to the company with its present production level. To be clear the company have done nothing but shoot themselves in the foot for no reason, they have essentially advised the market no one is willing to refinance crimson at this stage.

- They have no near term wells of any significant size or scale. The funder Crimson knows they have the company between a rock and a hard place lets see that renegotiated PHA fee which will further inhibit any organic growth opportunity to drill.

- The directors loans are due next year not sure they will throw more money at the situation.

-Performance of G#1/G#2 suggests they have really over estimated both the size and productive capacity of the field - expect wholesale reserves downgrades attributed to SM#58. While the company blame hedging as the reason for not proceeding with the funder its clear G#1 & G#2 are unlikely to repay the cost of the drills. How the company will try and spin there way out of this will be interesting to note.

- List of under performing wells/ interpretation of seismic is now really starting to add up - who would look to farm in based on BYE interpretation of seismic data.

- F#4 - Production miss well shut in unlikely to cover a fraction of the drill cost.

-F#5 - Still to be seen if this can be side tracked into a producer. If they really were confident of this option they are dragging their heels with JV partner.

- Lower O sands miss

-G#1 - Seems to be gas prone and production down significantly from initial output. The question has to be has production really stabilised and is being supported from the water drive mechanism or have the co got this bit wrong as well ....

G#2 - seems to be dead - no update after 5 weeks suggests production problems persist.