Ann: WE5 Production Test Update, page-214

Must disagree with some of the points made here.

The STX drilling/ops team has actually performed well since the WE3 well which appeared to be poorly designed and executed. Of far greater importance are the rocks and the geology that lies beneath WE.

The notion that WE is superior to Waitsia which STX has claimed for a long time is a complete fallacy as the well logs and flow rates from at least the last two wells have shown. Formation damage from drilling/cementing being the cause for WE5 flow rates to be as low as they is a possibility but I would rather be guided by the logs and the clearly lower reservoir quality that STX have actually reported for that well.

Go back and look at the 2018 AWE reports and reserves numbers for Waitsia prepared by RISC, the same independent expert group hired by WGO (David Biggs) for their WE resources report which STX have continued to dismiss and ridicule. It would seem very unlikely, based on the WE well results seen to date, that NSAI will be able to come up with 2P reserves (not 2C or prospective resources) anywhere near what was established for Waitsia (approx 0.8 TCF) as a precursor to FID and third party development funding for WE.

I would be happy to be proven wrong and reinvest in either of the JV companies should that be the case.