Ann: Debt Refinancing and Drilling Program Update, page-85

Apologies, my calculations were out of whack, as you'd applied 3/4 ($2.625m) of the repayments to Q2 instead of 2/4 ($1.75m) and I followed that through. The net quarterly income from Q2 was then incorrectly applied to Q3, as your logic implied a 50/50 split of repayments, but the numbers in fact show 3/4 to 1/4. This has the effect of short changing Q3 by $1.75m (by understating net income by $0.75 in Q2 and flowing through to Q3). The end effect is that the increase in Q3 to Q4 balance is correct, but the starting point is too low. So, my perpetuity comment was incorrect.

Q2 closing balance is under by 1/4 of the repayments ($0.875m) as you've applied 3/4 of the repayments to the June quarter instead of 2. Closing balance should be circa $1.7m.Disregarding the repayments, quarterly net income should be circa $3.65m.

In Q3 1/4 of $3.5m should be applied, seeing this net figure reduce to $2.8m. This leaves the end of Q3 balance at $4.5m.

Q4 sees net income of $3.65m leaving end of Q4 balance at circa $8.2m. Happy to be corrected if I've put a foot wrong there - hard without the spreadsheet.