Ann: Operations Update, page-91

I've had a very busy morning and only just had the chance to sit down and really absorb the announcement.

Was fantastic to get those gas results from Yangir, and equally exciting to confirm two rigs starting on two strat holes in another two sub basins. Then for fun throw in the 2D seismic work targeting multiple new basins.

Naturally the share price jumped, and some saw it as an opportunity to do some profit taking. I've never executed a 'sell' transaction on any of my EXR shares, no matter which way I look at it there are just too many possibilities coming up that will see the price continue to rise.

From the perspective of 'fattening the pig for market' (to use the expression that I think Richard Cottee used in the Crux interview) the company is now opening up two new sub-basins to add to Nomgon and Yangir. So far we've got the Contingent Resource for a small part of the Nomgon area (13 sq/km out of 228 sq/km). We've got flow testing to come, the feasibility study for the power plant, then the possibility of continually adding to the Contingent Resource already realised.

We know we have an Australian company inside the PSC who have a need for power - and here we are with gas that requires no processing, a feasibility study for a power plant and potentially the ability to produce power - minus the particulate pollution that is such an issue in that part of the world.

To my mind this has the ability to comfortably grow the market cap of the company in a similar trajectory to what we've seen over 2021. Unlocking each new piece, realising the value that piece unlocks - and then moving onto the next phase built upon the foundation of all the other pieces before it. So with all of that in mind, when is the good time to profit take?

I also appreciated the update re the Covid situation. This is fluid, it's a risk, and they're managing it. Rather than say nothing they communicated - why this is so hard for so many companies is beyond me. It's simply projecting to the market that you have plans and strategies. Well done to Neil and the team, the great work continues and on-going faith in your abilities and plan appear well justified to me.