Ann: Farm-out of High Impact Rafael Shallow Exploration Well, page-58

Thanks for sharing your opinion/view of the management performance. I have tried to think that way, however I differ vastly because of unanswered queries I have as below:

"Don't blame the company for that " - If the company management is not to be blamed, then who else is to be blamed? The way I look at it is that,

a) BRU had been successful and lucky to have somewhat/genuine resources of value. Some of our resources have been valued by independent agencies to be a minimum of 39c/share (posted here by others). Why is then that our SP keep tumbling? It to me represents the only variable - that is the management. In saying this I have participated for both 16c and 11.5c CR - the reason for my participation was that I needed to support the CR, held confidence in the vast resources we held, we had a income stream (Ungani) which took care of expenses, some cash we held, expertise of our technical teams including Eric, TN coming on board giving new hope.

b) When Origin and ROC exited, BRU had 100% stake and opportunity to increase revenues and resource - who is to be blamed for waste these opportunities?

c) When the CR at 11.5c was announced, there was no perceived requirement or justification for cash - where did these funds end up?

d) Why there is significant cash burn? At the same time, income streams have been mismanaged etc etc - Current quarter itself 1.942+ 1.94= 3.882M/quarter - Are these funds utilised efficiently? I doubt. What is TN doing as the responsible person?

e) I emailed some concerns/queries to TN - No fair and satisfactory answers were received. I asked the same questions during AGM - they were not answered - what should I feel about the management? what level of confidence should one hold?

These are just some of my concerns.

Currently, I am holding better hopes because of:

f) a little known partner is ready to throw 10M for 2 wells although our own management does not hold that confidence to do it in stages, which resulted in us loosing more than half of those shared resources
g) the partner should possibly push to get the wells drilled as they may be having a properly oriented/driven management. There is still risks associated with permitting etc which our management is handling.
h) even if we only hold 30% and 50% with the partner, it should still possibly take our SP beyond the 20c which will give me an opportunity to exit or re-evaluate.

At the end of the day, if one agrees or not, 2 key factors that control the SP is, 1-the resource that we hold 2- the performance of the management that handle the resource. I think we are lucky with the resource part, not so lucky with the management part as of now. I wouldn't blame anyone for that matter. TN can only do what he is capable of doing, the results will tell what he has done during his tenure (currently negative), if the SP was 20c now, I would not have made this post. I do not expect TN to be a magician or perfect, but definitely expects him to take help and work as a team with the SH who holds the sac. I believe, his success will be ours too. But his failures just becomes our investment failures while he keeps making his salary. Hope we all consider taking this up with the management and that make our day one day. GLTAH