Ann: Significant Resource Increase for Calima Lands, page-32

Once the decision was made to "go for it" with the drilling in Dec 2018 we were committed. We either spent the $25 million and drilled or we didn't, the drilling cost basically what is was supposed to . BUT WHY did we go ahead!!!!?

At the time the Montney plays were in absolute freefall, PONY had been crushed and was at $1.40, Delphi DEE was smashed and was at 40 cents (DEE was at 80 cents when we raised the $25m) . Implied land values were in freefall , price of gas in canada was essentially $0, trans mountain had been shut down by US O&G funded law suits and there was little if any chance of M&A in this environment. It would have been easy to explain to the market that things had gone toxic since the money was raised in Sept and we were going to put the vehicle in a holding pattern until things became clearer. It is impossible to be generous the sector fell off a cliff between raising the money and starting drilling.......

Fast forward 7 months , PONY is at 87 cents, DEE is at 16 cents, making new lows on a weekly basis. Incredible despite Trans mountain (building starts in Sep) and LNG Canada being full steam ahead from what I read....