Ann: Transformational acquisition of 1,300 Natural Gas Wells, page-2

Wondered if this was leaking. Did you get on fellas? LOL
TRANSFORMATIONAL ACQUISITION OF ~1,300 NATURAL GAS WELLS
DELIVERS LARGE AND PREDICTABLE REVENUE STREAMS TO FREMONT
• Non-dilutionary acquisition of 100% of Magnum Hunter Production Inc. (‘MHP’ which has a
portfolio of ~1,300 operated long life, low decline natural gas wells in Kentucky, Virginia and
Tennessee covering ~100,000 acres of leases across the Appalachian and Illinois Basins
• Currently producing ~8.0 MMcf/day gas, 16,000 Gallons of NGLs and ~100 BBL oil (~1,700 BOEPD)
generating average monthly gross revenue of ~$A1.01m1 and operationally profitable
• Diverse customer base with currently 13 sales/off-take agreements including utilities, corporate and
government customers
• Leases have considerable upside: 80% of current production comes from only ~25% of the wells;
Opportunity to ramp up production by working vast inventory of shut in and underperforming wells
not currently contributing to production
• First objective is to immediately increase gas production and NGLs by ~20% with all work funded
from cash flow; Supplier agreements being renegotiated to further enhance revenues and improve
margins from gas and NGL sales
• Scope to also increase oil production through improve storage and logistics solutions
• Leases are long life and Held by Production (HBP) with no annual drilling commitments. Production
commenced in 1995 and 63% of the lease acreage remains undeveloped.
• Extensive due diligence and negotiations undertaken since August 2020 to secure the asset following
a competitive bid process
• Highly attractive terms: Acquisition price of US$425,000 with close anticipated by end March; FPL
assumes operatorship and revenue streams immediately
• MHP is a fully functioning, turnkey operation headquartered in Lexington, Kentucky with a
dedicated 35-person team, several hundred kilometres of gas gathering systems and pipelines, and
associated compression systems feeding into existing sales channels, a vehicle fleet, workshops and
equipment which provides FPL with all necessary infrastructure to ramp up production and
undertake further asset consolidation in both the Illinois and Appalachian Basins
• FPL to hold webinar 11 March 2021 at 11.30 AEST to provide further details on MHP and the
Company’s broader growth strategy
1
Based on average revenue for the 3 months ended 31 January 2021 which includes the peak winter sales period.
Exchange rate of $US0.77 buying $A1.00 used.