Questions and Answers copied from ”Stonehorse Energy” investor...

Questions and Answers copied from ”Stonehorse Energy” investor hub
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Questions)

Question 1)

How much is SHE expected to receive per mmcf or mmBTU when they sell the output from Certus well 1-27-33.

Are Royalties to Alberta already factored into the price they sell to Alra Gas ?

Questions 2)

Does SHE pay any fees for use of the pipeline that will transport the GAS ?

Questions 4)

Is it likely that Certus well 1-27-33 will be re stimulated during its lifetime?

Questions 5)

Will SHE be liable for any liabilities for rehabilitation cost of the well?

Questions 7)

SHE has sustained tremendous growth in revenue and cash accretion over the last few years to such an extent that its liquid assets exceeded its market cap! SHE fair value does not seem to have been reflected in the current share price meaning that SHE appears substantially undervalued even going so far as appearing the most undervalued profitable entity on the ASX this year.

Questions 8)

Are there any action SHE board intends to do to address the imbalance? Such that Investors can be rewarded for the long term patience and placing trust in the board of SHE.

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David Deloub reply

Thanks for your acknowledgement and series of questions. We will be addressing some of this in the course of the scheduled Webinar on Thursday, but I can respond to some of this in the interets of time.

Q1. & 2. All in cost (royalty, transportationn, processing, opex, marketing) for nat gas is ~$1.20mcf and for oil its ~ $20.00bbl.
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Q4. (Q3 missing). No, initial fracture stimulation as part of the completion of the well should be sufficient. The Operator may put the well on artificial lift (submersible pump etc...) at some point in the future.

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Q5. Yes, we will be liable for our pro-rata share of the Plug and Abandoment (P&A) costs of the well. Well life estimeted to be +20yrs.
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Q6. Difficult to predict.A we do not hedge our producion and sell 100% into the spot market, the best indication of impact would be reflected in the forward price strip for gas. On the cost side, increased capacity in the pipeline infrastructure may result in lower transportaion costs.
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Q7. Not sure about being the "most undervalued profitable entity on the ASX" but definately agree with the sentiment!
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Q8. Yes, we are especially focused in getting the Canada growth story out, We have established high quality technical and commercial capability in-country and we are expecting future producion results to be reflected in the share price and the company market capitalisation.