Ann: Update - Notification of buy-back - BRK, page-9

Hi Ampadu44

The management team have biannual trips to the states, usually around March and September . So DP being in America at this time is not something new.

What is unusual is the extended duration of his stay, which was planned. The “ market” is well aware that BRK is in deal mode as BRK have said to ad nauseam they are in the monetisation phase of the process in regards to the SWISH assets.

As far as parties are concerned, that remains to be seen. Doubtful that there will be an outright sale IMO but we should get some sort of look through at the value generated via the drilling JV.

Almost certainly the deal / deals will involve a carry through the development drilling of the DSU/ DSU’s involved, and to equalise the WI involved, a sale to to new party, a % of the production ( PDP reserve) and ( PNP or Proved Non Producing reserve).

For example, ( my estimation only), if BRK negotiate deals for 30 % of their WI in the producing DSU’s, they would sell 30% WI in Jewel, Rangers, Flames and WP wells for cash, ( $$ amount…. your guess is as good as mine) and the farminee to earn their 30% WI in the DSU’s would have to fund say, 50% of the cost of each well to be drilled in the DSU. So that would mean BRK funding 20-30% of wells they have 40-50% WI( my guess only)

The real impact for BRK should be each DSU would be batch drilled and completed, meaning 4-6+ wells in each DSU simultaneously coming on production as they are flowed back, probably one DSU at a time, over a much accelerated pace than the 1 well every 3 months for 5 years.

Obviously , once the deal/ deals are announced we will get a much clearer picture of what is entailed, and then we can get down to full analysis and finish with all this conjecture….. every day that passes gets us closer.

Do I believe DP will come back without a deal/ deals of some sort ? ….. No. IMO it will be more of what sort of deal and how “ happy” will we and the market be?

Ciao

Dan