31 January 2018 Australian Securities Exchange 10th Floor, 20...

31 January 2018


Australian Securities Exchange 10th Floor, 20 Bridge Street SYDNEY NSW 2000
Dear Sir/Madam

via e-lodgement

APPENDIX 4C - QUARTERLY CASH FLOW REPORT
MEC Resources Ltd (ASX: MMR, ACN 113 900 020) (“MEC” or “the Company”) is pleased to provide its
Appendix 4C (Quarterly Cashflow Report) for the quarter ending 31 December 2017.
The Company is also pleased to report that with the financial assistance of MEC, Advent Energy Ltd (“Advent”) is commencing operational preparations for a 2D seismic survey in PEP11, as a work commitment for the petroleum title. During the last quarter MEC has provided funds in excess of $80,000 to its investee Advent to further the development of Advent’s assets. Work performed included engaging acoustic modelling specialists, environmental consultants and geophysical expertise to complete the necessary revisions to the PEP11 2D seismic survey Environment Plan and request for further information received from the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).
On 10 January 2018 MEC was pleased to advise that NOPSEMA formally accepted the PEP 11 Baleen 2D HR Seismic Survey Environmental Plan. Advent has now commenced mobilisation of equipment and preparations to undertake the 2D survey.
Potential discovery of commercial quantities of natural gas in PEP11 provides an exciting future for the Company considering the gas market challenges facing the east coast of Australia.
Furthermore, the Company was pleased to advise that it has raised $300,000 (before costs) through a placement to sophisticated and professional investors1 of 14,285,714 ordinary shares at an issue price of $0.021 cents per share (Placement). The Placement was managed by Panthea Capital (Panthea) pursuant to a mandate. The funds raised under the Placement will be used to assist Advent in developing work programs and undertaking preparatory works for activities in EP386 and RL1 in the onshore Bonaparte Basin, including well intervention activities as previously advised. These works may assist in progressing discovered resources and contribute towards title security of EP386 and RL1. Funds may also contribute to working capital.
Management are continuing to minimise all costs of the Company. A cost reduction plan was developed by the Board and has been successfully implemented within the organisation to ensure costs are continually scrutinised and where possible reduced.
We welcome your questions and comments regarding the Company. If you have any questions please do not hesitate to contact the Company on 08 9 245 6187 or [email protected].
Yours faithfully
Mr Goh Hock Chairman

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