Banter and General Comments .. BRK, page-11737

Lots of expenditure and lower revenue is exactly what you will see for this quarter and the next.

In all honesty, why would we expect anything else. The drilling took ~4 months and the completions will take ~1.5-2 months, so the vast majority of the gross US$ 40 million ( AUD$60 million) will be spent a cross these 2 next quarters, with a smaller portion in the Dec Quarter.

Over this period BRK will show the full expenditure in the cashflow statement ( $60 million) but will also show ~$20 million ( $~$4.5 million already received) as payments from other WI owners. Some of those 3rd party JIB payments may be paid from cashflow so it may appear as net revenue for by BRK later down the track. ( eg , in the Q1 report)

So please DO expect a fairly large drawdown in cash this quarter, and probably more next quarter. Also expect falling revenue for this quarter and the next as existing production declines, exacerbated by the Flames well shut in which will occur during completion. The cashflow from flowback and production will not peak until Q1 -Q2 next year ( FMDP and Gapstow) but we should still see a significant step up in the Dec quarter cash receipts.

Hopefully BRK can keep to the Q2 start for Bruins and this is where the previously mentioned lending facility ( up to US$15 million ) may play a part if they go down that path.

Remember, BRK are operating a gross spend this year greater than their market cap.

Cheers

Dan