Ann: Retail Entitlement Offer Booklet Dispatched & Offer Open, page-59

Hi Bruce,

The examples for MLA I listed were taken from Credit Facilities of (US) companies ... and again I'll stress what we have is a non-revolving credit facility (I'd call ours a Term Loan). They are just examples of some of the "standard language".

Back to basics .... why is it even there? Because when companies started getting into trouble they drew down the maximum on their revolvers - hence this covenant is there to prevent the borrower hoarding cash and the lender gets ahead of any "distress". It is why I directly quoted CHK and the MLA from their revolver.

We don't know how OEL's MLA is written .... and it seems we'll never know. I was surprised to even learn we had one!!! (was OEL distressed in Nov'19 ... wasn't the debt facility supposed to be funding the Capex required for development of Lightning, GC-21 and remaining SM-71 ... weren't we a bit surprised at the "size" of the facility (maybe now we know why as MB wanted a big buffer).

"It has to be based on scheduled development capex. I.e. The scheduled development capex is c$7m this quarter and the MLA will decrease from $17.5m at 31 March to $10.5m at 30 June."

NO - It could be but it does not HAVE to be. And that is my point. Given the Shareholder Letter which showed Capex of ~$13M in Q1'20, and OEL had drawn $22M then why wasn't the MLA (22 - 13) = $9M for Mar 31 or even $13.5M adding back the (mysteriously high) US$4.5M for F5. It is too little and too late. The time for disclosure of those covenants was Nov 4, 2019. Would we instantly breach next Quarter? Maybe. Could be another covenant that gets us.

Ask away. I've given up asking OEL. And think about it ... if you ask and they now tell, how much extra "disclosure" concerns will that raise? Never say never, but in this case its a safe call. I will NEVER TRUST OR HAVE ANY CONFIDENCE (however small) in what these persons.

I have become "Nina the Hyena". I don't feel smarter than the smart money from doubling my position at $0.004 per share. I'll look to exit with a lesser loss but will keep a minimum parcel so as to attend the AGM and "rain the shame". Texans have a great saying in "Remember the Alamo". This is my Alamo (and if it's obtuse ... even though the Texians lost against the overwhelming odds of the Mexican army they bought time for Sam Houston's Texian army to win the subsequent battle and now we have the RoT - Republic of Texas). It's a battle cry not an investment and that is the shame of it.