Ann: Quarterly Activities Report and Appendix 5B - December 2022, page-133

Mate

You didn't quite get what I am saying.

BRK are not about " profits" from production in the first instance, these are a by product from HBP drilling. Any SWISH development drilling is strategic in nature, not just for production revenue. Despite this fact, they have generated significant cashflow which will be recycled into further growth opportunities, at a faster rate than originally " planned" because commodity prices have been supportive, but more importantly, well productivity overall have been above modelling. This incidental cashflow grew from $4.9 million to over $52 million in the 12 months while SOI grew 50% via option exercise. They will not expend cash to drill SWISH wells to increase production except through a strategic nature. They will however drill and spend for production at the Bradbury AOI if they hit what they are looking for and expand their position.

I was pointing out that the cash hoard is a strategic asset to maximise flexibility and that payday is at monetisation, not during the company build pathway. Well decline is expected, modelled and not an issue in terms of their plans... they were expecting 18 month payouts and are getting 7-9 month timeframes.

Another factor was the importance for holders to be aware that the cash will not build quarter on quarter, every quarter, but will fluctuate. That is expected and all part of what happens when a company is in growth mode.

The SP is crap, but BRK are in the best position they have ever been in terms of assets, near term / medium term opportunity and literally on the cusp realising the first round of monetisation sometime in 2023.

If the only measure one has of a company moving forward is the share price, then Poseidon Nickel or BreX must be huge successes in one's book. Poseidon Nickel and BreX delivered significant share price gains but didn't deliver any shareholder value in the end and were punished with liquidation.

Whilst I am not happy with the share price, I am not shitting bricks over it and focussing on the bigger picture. You say management hasn't delivered shareholder value.. I say they have but it hasn't been crystallised. No one is perfect, everyone makes mistakes. It is not about what happens to you, but how you react to what happens to you which is important. DP, who found failure, disappointment , distress in the RFE experience reacted and responded by starting again with lessons learned , hence the aversion to debt, profit based on asset revaluation and sale rather than solely production and focussing on tier 1 acreage. DP, GL and the BM team have created significant inground value which increases with each DSU, and generated significant revenue ( $52 million in 2022) which comes with drilling of those DSU's.

We shall find out how much value will be crystallised soon enough...



Cheers

Dan

PS.. In regards to shareholder loans... DP will put his +$1 million on the table to repay the loan when it best suits him before the repayment requirement date.. If he doesn't, he will walk away with nothing but the ~15 million shares he has paid for.

FYI... If you do a cashflow analysis the future revenue of the SWISH assets in the base case/ high case (excluding Bruins), using current strip pricing you will find an UNDISCOUNTED free cash generation through of the life of the assets of US$800-$1 billion after subtracting of all expenditure including D&C. That's value generation for you which will be crystallised at a significant DISCOUNTED NPV rate through the monetisation process. Do you really have a problem with getting a $1 million loan from BRK to convert his oppies and him choosing the time of repayment ?

PPS.. please don't think BRK will receive US$800-1 billion at any sale of the whole SWISH acreage position... that is the free cashflow the reserves will generate over their 25+ year life .