Ann: Quarterly Activities Report & Appendix 5B-STX.AX, page-4

Perhaps the following comments re Klebb 4 shed some further light re circumstances surrounding recent management change:

During the period, the performance of Klebb 4 has declined. Whilst gas flaring is regularly
noted, water flows are now at the low end of the design envelope for the ESP. The
productivity of Klebb 4 is lower than planned due to the premature screen‐out of the
stimulation, but continues to contribute to the dewatering effort. Strike has pumped
seven fracture stimulation stages in the Patchawarra coals of the Southern Cooper Basin
Gas Project, six of which have been successfully pumped to design. We are confident that
the contributing factors of this less successful job have been identified and will not be
repeated.

As a result of the lower than planned performance for Klebb 4, some high‐temperature
issues have recently been encountered with the ESP, which had been performing with no
material issues to that point. We are working closely with the vendor to resolve the issue
and have already implemented some solutions, which are having a positive impact.
Contingency plans are currently being developed as part of our risk management process,
but it is important to note we are not reliant on any individual well to realise our goal of
commercial gas flows.