Ann: Quarterly Activities Report and Appendix 5B - September 2023, page-78

Hi mate

Think I might have caused an issue that isn’t there.

There is no indication from BRK that they won’t be able to fund their share of any JV deal. I was reconciling the course of the BB with the statement that they still were assessing the full gambit of options , hence the reasoning their capital requirements were still not entirely bedded.

This doesn’t mean when a JV is done, they will be short. I was postulating the fact that they are still in he process, the uncertainty was the reason why they were conducting the BB in the way they were.

Despite DP’s stated aversion to debt fund drilling, BRK actually have used debt previously. They used debt to fund the purchase of most of their STACK and much of their SWISH acreage position when they effectively had no cash and no production… they capitalised a 12% interest rate into the loan which from memory peaked at ~ US $ 4 million. This would arguably be considered a higher risk course than borrowing to fund development drilling whilst producing material positive cashflow.

So yes I agree with you, but Its probably a moot point, as BRK probably won’t need to find any bridging finance to fund their share of a JV.

Cheers

Dan