Ann: DRILLING PROGRAM AND CURRENT PRODUCTION Update, page-6

Might need another pre pre payment to afford those next batch of wells - the quarterly will make very interesting reading. Cash balance will have gone no where essentially they are robbing peter to pay paul at the moment should anything happen to the expected revenue stream they will be in deep trouble. At 15c alot of upside from this drilling campaign is baked in, if either wells underperform ala G#1/G#2 i suspect alot of upside and EV will need to be removed based on the very modest developed reserves booked and current production.

They had $1.6M cash last quarter (after execution and drawdown of the $4M prepayment facility).

-We know they need to repay residual $6M ($18M cost per Half yearly report less 12M already paid) E2 drilling costs this quarter.
-Prepayment of $3M will be required (covering months of J/F/M) under terms of existing prepayment faciliy.
-PHA fee will likely be around $3M (1600 bopd x $20/barrel)
-Production/Admin/interest costs are ~$2.5M (expect these to be a bit higher)

Assuming revenue for the quarter of $15M (generous as will cover D/J/F) cash balance likely to remain unchanged at $1-$2M in the next quarterly.