quarterly, page-48

Paul, maybe you can tell us who is going to win the grand final this year, the winning margin, and who they're going to beat, if your crystal ball provides the level of detail you're posting. Btw you havent yet responded on my decline curve question, yet you keep talking about the decline curves without any data backing.

Everest, your questions are difficult to answer with any basis in fact, primarily because the company has only forecast its drilling plan out as far as 6 months, so we dont know what they're going to do after that. Based on that, what I can say is:

1. The company is planning to drill up to 64 high impact wells in the next 6 months. If I recall correctly, they cost $600K each, so thats $36M capex if they do all 64.

2. The company is planning another 60 out of 72 shallow wells, having drilled approx 12 already, so at $250K each thats $15M. Deduct from that any wells funded by GS, but lets assume none until its confirmed they will.

So the drilling program for the next 6 months will chew up most of the $50M cash the company has today. Add back around $10-15 in revenue depending on production growth and substract lets say $5M in admin, etc, the company imo would have around $10M cash left by the end of Q3 and so probably have to raise additional capital or obtain debt funding by the end of the year - imo.

As far as production rate in 12 months time Paul is right we cant predict what the high ipact wells will yeiled, but I'll look at it another way. I'll take Mr Market's estimation of what the production rate will be on a 12 month forward looking basis by using current EV of $300M and value the company on a $150K/ bopd basis, and on that basis, imo Mr Market expects production in 12 months time to be around 2000 bopd, net to the company.

Would be interested in your view Eeverest, since you asked the question.

Cheers, Sharks.