Ann: Jewell Well Operations Report, page-90

Great to have confirmation that the drilling is completed, well secured with set and cemented production casing and the operation is proceeding as planned to the completion process.

To begin, the only " negative" is the fact that the lateral was TD'd 600 feet short of the original length. Tripping the well means pulling the whole drill string out of the well with the drill bit coming to surface. The fact that the well was tripped out for " scheduled " maintenance at 14100 feet (6500 feet lateral length) and then they called TD rather than reintroducing the drill bit and finishing the last 600 feet means that they decided it was not justifiable to spend that cash on the balance of spend/vs return for the last small part of the lateral. They probably had a minor drilling issue which mean't they may have needed to perform some scheduled maintenance a bit early. Does that mean there is some oil and gas left behind that the Jewell well will not be able to access?... definitely ... Is it a major issue? ... certainly no as they got over 90% of the lateral done and all other aspects of the drill went perfectly.

The main fantastic piece of news ( apart from what we already knew in regards to oil and gas shows) was the identification of natural fracture systems. Excluding the actual flow rate, this is the money statement and is the first mention of this critically important part of the geology which facilitates the production of oil and gas from these tighter horizons.

As mentioned before, hydraulic fracturing and stimulation does help create some fractures in the target zone, but this process is greatly enhanced by the natural fractures already present as these fractures project much further through the pay zone and allow the oil and gas molecules to enter the the well bore from much greater distances. The more natural fractures, a significantly greater portion of the pay zone further away from the well bore becomes connected and the greater the reserve and productive potential of the well.

On the balance of things, I would much prefer not to have drilled the extra 600 feet, and have more natural fracturing than the other way round. The presence of the natural fractures around the Jewell well bore bodes well for any future Sycamore wells drilled to drain the rest of the formation and should actually lead to an increase in total reserves and recoverability, especially if the modelling was conservative and if the data gathered from the drilling proved this to be the case.



Considering the cash that BRK/ SHE are spending to drill Jewell is more than the combined market cap of the 2 companies was at the low ebb of the market in that crazy time in 2020, what this team along with Black Mesa have achieved up to now, and will achieve over the next few months, is nothing short of extraordinary. You wouldn't know that by the matter of fact way they have just gone about their business.

Why would anyone sell out now?

Cheers

Dan