Ann: Vali Project Update, page-3

Hi Cara, Stumpy,
With first gas from Vali and Odin expected by year end 2022, I took a quick look at potential daily and annual cashflow for MEL in 2023. I would welcome your input / thoughts on my assumptions which I sourced from various announcements. I'm just trying to get my head around whether this MEL's future cashflow will be sufficient to turn MEL's fortunes around.

Key assumptions for cashflow;

• East Coast sales gas price = $10.50 / GJ
• OPEX cost / GJ (Cooper Basin) Wells, plant, royalty / tariffs, tax = $7.21 (sourced from Core Energy Resources (2019: Cooper Basin)
• Sales gas price minus OPEX cost = $3.29 / GJ
• Based on modelled well rates to achieve a production plateau of 9.1mmscf/d hydrocarbon gas - see below
• 1 GJ = 947ft³
• Production plateau rate = 9.1 mmscf/d hydrocarbon gas
• 4 production wells with excess wellhead capacity
• 300 stream days / annual

Result

• 2023 net MEL $7,914 per day
• 2023 net MEL $2,374,248 annual

Kind regards OldGeo