Ann: Red Gully North-1 Completion and Testing Plans, page-9

well it seems to me that EGO is confirming it is waiting on confirmation of the completion and testing of RGN1 to move forward on the process of repayment of the ERM loan, and maybe it will unlock a farmin partner.

once these contingent resources at RGN1 are converted to reserves, it will allow the investment decision to be made as to how and when that gas will be produced.

the testing to begin in April, so the results should be in before the ERM loan is due for repayment, which I think is end August 2016.

that decision, or the proof of the reserves at RGN1, will enable EGO or a 3rd Party to negotiate a funding package or sale of that asset. Could be in any form.

The move from contingent resource to say 2P reserves, may provide the extra asset to enable EGO to fund the repayment by way of a reserves based loan? or provide that final evidence of extra cashflow to enable a sale leaseback, or a straight out debt facility?

Equally, a farmin party might be wanting to farmin in to RG plus other permits, and this may assist in that process?

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"The testing objectives include determining the deliverability of gas and condensate and recovering hydrocarbon samples from each zone. A successful production test will allow significant contingent resources to be converted to reserves, thereby commercially justifying an ultimate investment decision to construct a pipeline tie-back to the Red Gully processing plant. A tie-back of RGN1 to the Red Gully plant will support an extension of plant life or the expansion of production capacity. "