Ann: Latest Company Presentation, page-8

I thought it was a relatively good presentation and continues further insight:

• Net debt reduced by a further $6m in the quarter from $70m to $64m and guidance of another $10m for the calendar year. If true, net debt will have reduced by $25m over the CY vs $22m guidance. $25m equates to 3.5 cps....
• Sales increased by c4% quarter on quarter and revenue of $19.5m vs normalised revenue in $18.8m in March-19 webinar.
• Continued indications of strong pricing to be achieved in next GSA

"EnergyQuest analysis shows$9 to $11/GJ delivered, whichsupports ex-field pricing forCentral of $4.50 - $6.00/GJ"


Bear in mind that our current ex-field pricing is blended at $5.12 GJ, but is probably closer to $4.80 over the CY19 (IMO). Every $0.5 increase provides c$5m net cashflow based on 10PJ being delivered to the east cost. $6.00 ex-field would translate to c$12m in additional cashflow.

• GSA is highlighted for the 3rd quarter of CY20 only - this indicates that they expect to conclude between now and end of Sep-19. This would be great...especially if we can secure 3+ years at ex-field $6.0
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• Current activities shows that optimisation and converting 2C to 2P at Palm Valley is a priority.
• Farm out / in opportunities - personally, i would prefer them to do a juicy farm-out to a major on something we can't realistically fund ourselves. i wouldn't like to see us farm-in to anything as we should be prioritising expenditure to increase reserves and to hiss more gas down the NGP.

Overall, I don't expect there to be anything material to appear in the quarterly given this presentation - it's steady as she goes with pieces of hopefully good news to be dropped in over the next few months....although, praying for Dukas Maybe we will talking like chipmunks in a weeks time gassing out on He.

Cheers