Ann: Quarterly Activities and Cashflow Report - June 2024, page-38

And by the way, I agree with Swami on a lot of things but on BRK operations he is completely wrong.

The “ treadmill” started with the FMDP drilling.

The first 3 wells ( Jewell, Rangers, Flames) were reserve definition and HBP wells… Wolf Pack was drilled to “ protect” the eastern flank of the Rangers DSU from the Scissortail drilling in the adjacent DSU which as all wells do, caused a sump effect for the surrounding reserves.

Anyone who understands resource development of any description knows there will be a substantial capital outlay at the onset which takes time to be recovered through production revenue. Each DSU development is effectively a stand alone project.

There will be cashflow deficit through the FMDP which will mean BRK will almost certainly utilise the mentioned US $ 15 million facility if they want to start the Bruins development in the first half of 2025. That is why there is a longer gap between the Bruins and the next development ( most likely Jewell) , as they need to rebuild cash to replenish the loan and then fund a 6 well program.

The cashflow from FMDP, Bruins and Jewell will be such that the 6 well Rangers DSU development will be able to commence without delay.

Apart from a small loan facility, BRK will be able to self fund a AUD $ 200 million dollar development program over the next 4 years. All generated from 2 cap raises of ~ $ 18 million and ~$22 million in option exercises.

These are the facts …. no polishing rags needed.