The cold hard facts spells disaster

So while we still have the last of the optimists here maybe 2-4 holders, here are some facts. This is my observation of why management have made another huge mistake, RESIGNATIONS HAVE TO HAPPEN NOW from this disaster attempt on this well for what it is worth IMO..

After $10Mil spent should have PA. But NO we spent another wasted $10Mil and the basic facts are this. Who ever made this decision should resign, they are out of their depth imo if they decide to continue.
- Water a huge issue very costly to remediate if at all.
- This well is basically a condensate well, again water is going to be an expensive ongoing issue.
- This announcement doesn't say this for you but I will. If we ever get gas flowing, which I doubt. Most companies do not continue with less than 2TJ a day as not economical. Most turn off those <2TJ a day. Look at GGW around same figure. Plus another $4Mil for pipeline, seriously this can not be considered. Our gas flow is a tiny 1.2TJ NOT economical is it. So why continue.
- Again announcement cleverly covers up the fact we only have at best just over 3 PJ of gas, not 7.5PJ. Huge expense to get this if at all to flow. 3PJ of gas is bugger all and at $6 a PJ only leaves after costs etc a $2 profit around at best total $7Mil profit.
- Condensate say $50USD barrel, say 700000 barrels (100 barrels a day), take out costs and expensive water holding facility could spend up to another $2 Mil and ongoing issues maybe $7-$9 Mil total profit at best. Might even be lower with ongoing issues with water and well integrity a major concern. Could even be PA later down the track.
- It is going to take maybe 8 yrs to deliver the 3PJ of gas with these very low and poor flow rates, again a few years for oil to pay as well, especially if water becomes worse.

Costs spent $20 Mil, could end up spending a lot more consultant costs X$, $4Mil pipeline and then another $2 Mil for water remediation total around $27Mil+

Potential earnings of around $14-$17Mil

= A BIG FAT LOSS

This well is a costly disaster and will not return a profit from how I see it. My figures might be wrong so don't take these figures to be 100% accurate as I don't know all the costs etc. Surely the company CFO/CEO could enlighten me, BUT this is basically my opinion, in any case who is responsible for this terrible decision to pursue this well and waste millions of our money. I think after the company goes any further of wasting our money, heads have to be held to account and action needs to taken. No other way to say it is there. Any other business who makes bad decisions or mistakes are accountable, why should EGO be any different.

We can not continue with this approach, team and plan.

I would be amazed if the biggest holders are not very upset and no doubt changes will be coming. Surely they would be talking amongst themselves to find a solution. They are all now on huge losses with no profit ever coming soon. MIN won't rush to do much either imo.

Changes could be on the cards as the company will attempt anything from now on to sell a positive scenario before AGM (we are in damage control imo), we might be presented with mergers - maybe even a script offer or T/O (unlikely) coming, big holders get together and force changes in the team which imo clearly have mismanaged this well imo. Raise cash further dilution or MIN step up and obtain a higher % as they wouldn't be happy either. No way would nothing be happening behind the scenes that's for sure. We are in a far worse situation then we are lead to believe imo. Only a matter of time before something happens.

So when is the company going to explain their actions, costs/projected costs, likely reserves and what happened to upper D Sands and of course the panic situation to go back to DMP to go back to C Sands after the D Sands mess up. Hence the very polite mention to DMP. We are in serious damage control over this well and they still consider spending more. What planet are we on!

This whole well saga, cover up what ever you like to call it has been a complete waste of time, funds and consequently damaged our market sentiment. These actions or failings has and will continue to cost us all. I have smell big changes coming as they should, enough is enough!

Now over to the couple of positive people to discredit my summary. All I say things will happen and changes will be made prior to AGM. Again I will be proven right. Good bye all and good luck a very interesting few months ahead, hey but what would I know, lol!