Ann: Status of Commonwealth Government Grant, page-24

Stuff we shouldn’t have to read in REY’s QR FFS Eric

Canning Basin – the Fitzroy Blocks (EP457 and EP458)

Following the execution of formal farmin agreement on 15 April 2021 with Origin Energy, the planned Celestine 2D seismic was completed in September 2021. All the seismic data was received and completed the processing by operator. The final outputs were received in March 2022. The seismic survey Is primarily within EP457 with total length of 383km but also about 147km extended into EP458.
Interpretation of the Celestine 2D seismic data and integration with the existing grid of vintage 2D data was ongoing throughout Q2 2022. It is apparent at this early stage of the interpretation that the Celestine 2D survey has allowed the identification of a new play that was not previously recognised. This new play involves a postulated salt body that trends across the southwestern part of EP 457.

Exploration and evaluation expenditure recognised on EP457 and EP458 tenements (Petroleum project) under joint venture agreement with Buru Energy Limited. This amount includes the Group’s proportionate share of exploration assets held by the respective joint venture entities. On 21 December 2020, a binding letter of agreement had been executed between Rey, Buru and Origin pursuant to which both Buru and Rey will farm-out 20% of their respective participating interest in each of EP457 and EP458 to Origin. On 15 April 2021, a formal farm-in agreement was executed between the parties and Origin now holds 40% interests in each of the tenements. Origin shall elect by 5 January 2024 whether to carry and fund the first $6m for one exploration well to be drilled on the Permits. If Origin elects to drill the well, the drilling needs to be completed by 5 January 2025 or such later date agreed by the parties. If Origin elects not to drill the well, it can choose to either withdraw from the Joint Ventures (and assign the Farmin Interests back equally to Buru and Rey) or remain in the Joint Ventures and assign a 10% interest in the Permits back to each of Buru and Rey.