Ann: Presentation, page-65

I read that bit over and over to determine whether or not a breach occurs.

This goes to the discussion I was having with GDN ... the breach gets "triggered" by an operational metric (usually) that is determinable from a Qtrly report. So all clear as of Dec 31,2019 (we think but don't know for sure). Now here we are in the Mar Qtr, soon to report and the messaging is

".... subject to completing .... Placement .... Entitlement offer ... it will be compliant with the key financial covenants"

Therefore if the CR were not to complete they would not be compliant. That is my conclusion. No CR = breach

Therefore, during the March Qtr, something has occurred that would trigger a covenant breach when financials are reported ... and I'm guessing here but the most likely is Debt/EBITDAX ratio only because it appears to me that part of the CR is to "payback" the cost of the failed development F5 well. I'm guessing here though.

On that basis (of not completing the CR) and therefore not being compliant with its covenants,

"it may be in breach of its obligations which would entitle Macquarie to exercise its rights ...."

These are 2 different things. Macquarie might simply say OK you breached that covenant. We will grant you a waiver but its also going to cost you say 0.5% in the interest rate or something like that.

Breaches can be remedied. But that's NOT MY POINT!!!

The point is this is important information (what the financial covenants are, what the breach is and how extensive was it) that is NOT BEING DISCLOSED to fully inform shareholders who are being asked to invest further funds into the company with a complete recapitalization .... because they are raising more than 100% of the issued shares to basically ot do a great deal other what looks to me like repaying some debt.

So far (this morning for us and 2.30pm Houston) I have not received an email response from MA on the covenant question. The market is not fully informed ... and my guess is some participants may have more information that others.