Ann: Odin-2 Appraisal Well Successful, page-38

If O-2 flows at 3.5mmscfd or more then 5mmscfd from Odin field is possible. All the cash is coming from Odin and Vali is basically breaking even. I get around $100k EBIT/qtr. If O-3 was drilled and added another 4mmscfd EBIT rises to around $400k/qtr.

MEL needs to organise longer term funding to allow them to make up the SPP shortfall and repay the short term $1m. ($1.3-1.5m) MEL also needs to be looking to drill O-3. ($1m). It may be easier for MEL to get funding to achieve both these outcomes on the back of success at O-2. We are back to chasing a new $3m facility to replace the one denied to MEL by KBC.

It feels a little "groundhog day" for SH's however for potential lenders MEL has a new story to pitch with O-2 drilled.