Sensational Hit Rate but, ..., page-3

That’s why we couldn’t get a reserved based facility as a company needs a steady revenue stream off several projects to get to that point. The other option is to piggy back of Hillcorp and Talos debt facilities at a venture level.

The current production is the buffer that will fund the next step with lightning/Bulleit/mustang developments. SM71 is a strong production asset, Bulleit will provide an equal revenue source and lightning is a 20+ year production asset. Just look at the potential reserves that are onshore at lightning, it’s a good asset that will be valued at ~USD100m for our equity share. A full development will probably flow 30mmcf+1000bcpd off 2-3 wells.

Bulleit will probably surprise at the high side of reserve figures with both reservoirs coming in good. We will need another 1-2 wells here. Expect a revision of development costs upwards if reserves are substantially higher. I would hope reserves are out in a month or two.