Ann: Operations Update, page-183

IMO running into drilling issues at this stage of the exploration phase is a good thing. EXR is practically a first mover into a new country so they don’t have a lot of historical knowledge or long-term relationships with stakeholders (drilling contractors).

As someone alluded to previously, Neil commented ‘plans had changed’. Coupled with today’s announcement, it signals to me that managment is aware of the challenges they face and are actively working towards rectifying the issues. Don’t forget the managment team we have behind EXR… I’m sure would have encountered similar challenges in the past. However we are in a foreign country with different cultures so this will always present new challenges.

I am not of the opinion that Management are just going to sit back and let things play out as they had previously… especially with the drilling issues recently. Neil and Co seem very proactive so they would be working to have contingency plans in place whether it be new drills rigs, drilling contractors, drilling teams and management etc.

I would much rather this occur early on so management learns from the mistakes. Imagine the effect of drilling issues in a few months time when we could potentially have 4 drilling rigs going, flow testing, more seismic, offtakes etc etc I’d be very overwhelming. Great that things are at a slow pace so then adopt the best and most effective practices going forward.

additionally for us shareholders, id much prefer the issue to occur now when the SP seems to have found some relative support levels. If we go down a few more points so be it… probably the weak hands exiting near the EOFY.

Come the new financial year when those that have sold of due to tax reasons have left (easing the selling pressure) and managment having clear and effective plans going forward I see a strong rally all throughout 2H 2021.

I’m a bit of a half glass full type person so actually see the negatives as a positive. All learning experiences which will compound on themselves and strengthen the knowledge and confidence of management going forward into the upcoming schedule