Ann: Clarifying Announcement - Investor Presentation, page-31

Hi LilArt,

OEL
Based on current projected cashflows (in and out) they don't expect to run foul of the "event review rules".
If things deteriorate then they may, hence the currently comment.
They appear close to the limit, so I don't think OEL are out of the woods yet.

I suspect that the usd$17.5m cash criteria implies that they still have that capacity to spend on "development projects" - Green Canyon; Lightening; Other?.

I suspect that the cash problem arose from what were nominally development costs, such as F5 duster and cost overruns and below expectation results at Lightening being written off, i.e., they can't be drawn from the facility. Therefore these costs need to be reimbursed to the facility undrawn cash account.

The fact that POO and gas tanked, and shutin production meant that they were not able to pay back the written off costs.

MQG

The fact that Banks, including MQG have had their share price slashed due to anticipated Bad Bedts, the Board;s of the Banks, including MQG, would have issued directives to Account Managers to reduce risk.

As a consequence, OEL would have been targeted for their looming Cash Balance Event Breach. MQG would not be able to cut them any slack. Although on the surface, it appears that they had managed to dig themselves a rather large hole.