Ann: Quarterly Activities and Appendix 5B September 2023, page-2

There are a couple of questions from the quarterly. I'm happy to write to MEL directly to clarify but thought that I would check here first in case anyone knows the answers.

1. As previously advised, sales revenue reported in respect of supply from the Vali gas field comprises sales
attracting cash payment and sales for which cash payment has been prepaid. From 1 July 2023, production
and sales figures include gas produced under contractual agreement towards consideration for processing
and transportation. The financial value of this gas is accounted as non-cash generating sales revenue.

That sounds like accountant speak for fudging the numbers?? We get paid $8/gj or thereabouts, that's easy and is real money.

But then ""production and sales figures include gas produced under contractual agreement towards consideration for processing and transportation. The financial value of this gas is accounted as non-cash generating sales revenue."
Non-cash generating sales revenue! God I love accountants.

So I read that as saying that from July 1 an amount of $4/gj or thereabouts will be booked as revenue but there is no cash from this?? Our share of Vali production is 42,000gj so while we have a receivable of roughly $194k around $166k will be non-cash generating sales revenue? So no money?

2. On Capex VEN's qrtly reported "$320k principally being for connection of Odin gas field. OK so a fair assumption would be that MEL's contribution would be approx. $160k as a 25% partner. Yet MEL has booked capex of $407 so what is the additional quarter million for?

I understand it could be in part accounting/timing differences but its a big chunk of cash. I would expect that MEL's capex would be locked in proportionally to VEN's? (e.g. Qtr 4 last year was VEN $440, MEL $221)

Does anyone else have a different read or think the same? Appreciate any feedback.