takeover, page-9

Hi mate


6 months ago, BRK had $ 33.9 million in cash, plus another $4.1 million owed by short term creditors, or ~ $38 million in liquidity. At that time, BRK, whilst having no debt, owed $ 22 million in short term liabilities, of which $6.3 million were to trade creditors( bills needed to be paid), and~ $ 15.7 million in accrued and other payments, which are essentially royalties and WI partners that need to be paid, more than 30 days out. Therefore, in effect,BRK had net available “ funds” of ~ $ 16 million

At June 30, cash was down to $22.6 million, short term creditors were ~ $ 5.5 million giving ~ $ 28 million in liquidity. BRK still had no debt, trade creditors were all but paid out ,down $ 6 million to $ 162k and outstanding royalty and WI liabilities had fallen to $ 13 million. Therefore BRK net funds were $ 15 million, a fall of $ 1 million over $ 6 months.

During that time, BRK self funded the drilling and completion of the Wolf Pack and Juanita wells, plus spent $1.1 million on the buy back…. which effectively equals the funds spent on the buy back. The decrease in cash matches the decrease in liabilities.

So to recap, BRK effectively fully funded 2 wells in the first 6 months of 2023…. one well (WP) generated cash for 3.5 months of that period, and the other was production tested for 1 month of that period. BRK also bought back just over $ 1 million of it’s shares… and the total effect was a decrease in NET funds of $1 million.

Hope that makes sense.

Caio

Dan