Interview about Jewell, page-3

I agree that the move to drill Rangers will follow in fairly quick succession.

BRK/ Black Mesa won operations of the Rangers DSU in late 2019 which gave them 12 months to start the well drilling so technically they should have started Rangers by Dec2020. Coved and the resultant massacre of the USA oil and gas patch put a stop to pretty well all drilling so the OCC granted 12 month extensions to anyone who had drilling plans in place. BRK received their extension of the Rangers DSU in February which gives them till December 2021 to start drilling the Rangers well.

Typically, the setting of he conductor classifies as the cmencement of drilling which then gives the company another 12 months to complete the drilling. I am not sure if this applies when a company is granted the 12 month extension but I assume it does.

So, it would not be a surprise of Rangers activity commences before the end of 2021.

As SHE have step in rights for the BRK asset drilling program they may apply for a similar piece of the pie as they have for Jewell. What will be interesting for BRK will be what type of offers to participate in Rangers they get from other third parties , especially if Jewell comes in significantly better than the 1300 BOEPD modelled. BRK may be able to farmout a wellbore only interest in the Rangers well that could include a free carried component .

The Rangers well, even though targeting the Woodfor shale, rather than the Sycamore will have similar metrics in cost on potential IP30 rates. If Rangers is spudded in late 2021/ early 2022 , is completed and flows ~ 1300 BOEPD by March /April (and BRK have a simliar majority interested~ 50%), then if Jewell decline doesn't commence for the typical 2-3 months, BRK this time next year could be looking at a net production rate from their 2 operated DSU's of ~ 1000-1200 BOEPD.

Funding for Rangers shouldn't be an issue as BRK should have ~ $3-4 million left over after drilling Jewell, some cashflow form the well will be coming in , SHE will have a few million left over plus cashflow from Jewell.... and there could be some early option conversions to refill the till..... there may even be some potential for some reserve based funding available.

After Rangers, the Flames well will be the next well in the queue which should follow a similar path to Rangers. this well is a Woodford gas target, but has the Sycamore present and may be repurposed for this horizon, especially if the Jewell sycamore significantly beats expectations.

The funding of the Jewell has opened the treasure chest of BRK opportunities.... an incredibly exciting ride ahead for those holders who are prepared to stick with this little beauty.

Cheers

Dan