Afternoon holders,I have spent a little bit of time sitting back...

Afternoon holders,

I have spent a little bit of time sitting back watching the development of project Orion of late and have started to get the feeling that we are beginning to see not only a significant growth step in the company but also a changing direction to complement what we as shareholders have familiar with over the last few years.

We all know that to date there has been a very sound business model towards acquisition, ground and reservoir proofing including divestments that have proven that multiple capital returns on initial acreage investments can be achieved, e.g. US$3.6m to date through high-grading, trading and divestment including US$12.5m value in proven reserves over ~400 acres within the STACK units a small portion of the ~3000 acre land holdings current.

Maiden reserve value plus land holdings with the current MC at ~A$5m!!!!! Still hard to argue that there is not value to be gained here at the current share price, however despite the best efforts previously and above has certainly not enticed ‘The Market’ to seek value and re rate to its asset based value………………sooooo what if anything has been missing? CASH FLOW, cash flow has been present but less obvious as it has been cycled through acquisitions high-grading, trading and divestment.

Previously the company has in my opinion not been in the business of drilling wells for cash flow but with the primary position of acreage revaluation and any cash flow realised was a beneficial by product.

So what has or is changing? For a start Project Orion, where cash flow has priority and acreage is the by product, this is better to fund a company and include growth opportunity in the acreage. The core business model I believe will remain the primary focus in high-grading, trading and divestment and this can be observed in the most recent presentation.

A roadmap of opportunity has been presented highlighting the ‘Three Pillars’

1. Operated Drilling –a. Primary business model focus - Proven Development, Operated Positions, Initial Developments Jewell, Rangers, Flames DSU
2. Producing Property Acquisitions –a. Project Orion JV – Significant growth opportunity on low cost wells delivering cash flow positive held by production positions, scalable opportunity to other lower 48 basins.
3. Land and Leasing –a. In conjunction with US subsidiary Black Mesa, implement the land, leasing and divestment strategy to realise the return opportunity before and after high grading.

A roadmap towards monetisation and re-investment has been delivered, the company has been proving itself and achieving its goals via increasing asset value base, now additional cashflow derived from production and Project Orion should now get ‘The Market’ attention, furthered with the ultimate catalyst being proven operated development in Jewell and successive operated DSU’s.

Further into the future may see realised profits returned to shareholders via share buy backs or possible special dividends.

Anyways, I was impressed with the latest presentation and have a belief that in the improving macro environment that the next few months will deliver further gains on all counts explained above.

Best wishes to all holders, as usual all IMO, DYOR not advice and all that jazz

Keep well cheers Paul