Ann: Investor Presentation, page-62

Q

I see that you have misread what I said. Let me be clear.

I am not confident that TEG will be able to raise debt funds for the drilling of Xanadu so any shortfall will need further equity. That will also be hard (but not impossible) given the small current market capitalization of the business and the anticipated shortfall, including contingencies.

I also said that none of the peer group have access to debt funding.

I think it is a mighty stretch of imagination to include Beach, Drillsearch and Senex as part of the peer group with TEG, as they all have vastly greater market caps (or did in cash of DLS) and oodles of cash generation to support the debt repayments.

The Strike debt is related to R&D benefits, which is an interesting method of capital funding, and probably not available to TEG for Xanadu.

I hope that is clear for you.

Cheers, Al