Ann: December 2014 Quarterly Report, page-2

Oh dear. Not quite what was expected.

The BB facility was for up to US$90M and US$55.71 drawn as of 7 Nov.

As at 30 Jan 2015 facility is drawn down to $68.5M and now at max - being linked to Reserves value and revenue which are now at a much lower price. As was noted earlier - where are the hedges and why does a bank not insist. Troy - that's a "captain's call" and a bad one to not hedge - way too small to not do that and you have to protect cash flow.

Cost cutting (fat removal) always needs to be done with companies of this size. But clearly liquidity seems to be forward looking issue. Looks like we need to defer exploration wells (JV permitting) or sell something (been trying haven't we?).

Renegotiating with banks on terms. How restrictive are our covenants and what wriggle room do we need.