BRK discussion, page-1669

Totally agree Paul

BRK is not immune from the POO downturn, but it's low cost structure, (people critical of it's ties to Cicero should note it shares offices and pays a service fee for admin.... You can look up the amount in the annual report), DP is effectively it's only executive officer , low debt ( STACK A drilling debt will be paid off early 2020 and production is ~ 70 % gas so low oil price will have small effect only) and the ~ A$ 4 million owing for the leasing facility is more than covered by the STACK acres NPV 10 reserves and the reserves in the Bullard unit yet to be certified.

There is no doubt that the current commodity price and sentiment for oil and gas will have effect on BRK as has been mentioned.... ~ $ US 8 million is needed to force pool to get to the 6000-8000 SWISH acres, we are looking at mid 2019 at the earliest for that.....but there are a number of funding options available from asset sales, extending the Andarko leasing facility or a CR...... Then there is attracting a drill co to drill the 5-7 wells on the force pool units which will start late 2019 and into 2020.... If the POO is too low then the economics will not make sense for any drill co to drill, and that will slow things .... However, the initial SWISH leases were signed in late 2017 and have a 3 year term, so drilling has until late 2020 to commence before expiry becomes an issue.

Who can say what the POO will be in the next year or so, BRK's business model is predicated on building assets at the bottom of the cycle and selling at the top, and it is still at the building stage, with a fairly decent asset base to use for the next stage of the build..... Nothing is certain but IMO, the company is still on it's pathway to growth and I expect that to be highlighted over the next few months... will the market take notice?.... that is a different matter all together.

Cheers

Dan