Production Update, page-15

Whilst the POO is still comfortably sitting about $60/barrel (LLS) I still watch with interest the POO fluctuations.

Break even (with 10% ROI) is $35 (~LLS is ~$5 premium). This is thanks to the low average leases the team were able to negotiate during the downturn and the average eagle ford decay rate for wells.

It would appear that we are operating higher than the average production, but that POO is the big driver.

So back to my point about POO fluctuations - based on current production a 1% change in the POO is worth ~$20,000 USD per month in additional revenue.

This is only going to compound in 3 months time when the wells are completed and producing - 3 months is my estimate.

More importantly the strengthening US$ is better for profits in AU$.

Looking forward to 2018