Could I give all of you a small dose of alternative theory here...

Could I give all of you a small dose of alternative theory here which might be a pause for some caution? One of the likely reasons for the long delay with NOPTA is the very real likelihood of an extension NOT being granted. I truly hope I'm wrong but just consider this. There is NO likelihood of BPH being able to fund its share of any drilling of this target field in PEP11. BPH has been racked with indecision, infighting and litigation for some time now and is hardly a stable predictable platform for a huge undertaking such as drilling PEP11 would entail. BPH has virtually no cash and no regular income from any source, but is completely dependant on future and ongoing capital raisings to survive and pay its operating costs, let alone fund expensive exploration. Directors and executives have been waiving their entitlement to pay and expenses including David Breeze. Have a good look at the recent Annual Report and you will see that there are pages and pages of comment, disclosures and warnings from the Auditors as to the company not being even close to a Going Concern.

If NOPTA were to grant this extension, BPH is going to have to sell out of the PEP11 project almost completely (likely a 98% farm out agreement and carried for the 2%) in a short space of time to ensure the drilling can proceed. So the government might rightly ask itself, "what is the point of granting an extension to a permit for costly exploration where the Grantee has no prospect of doing the work and finding this all important gas?". "The eastern seaboard desperately needs this gas and for the project to proceed we cannot and should not grant this extension in its existing form, but pull the pin now and get one of the large players in on the project asap". Wouldn't they be saying that to themselves? And wouldn't BHP or Santos or one of the majors with an ear in government be pushing the ministers, state and federal for that very outcome? There will be a good reason for all this delay and it's not likely to be bloody COVID. I'm just musing at the alternatives here and truly hope the extension is granted as requested next week however David Breeze is going to be looking to sell BPH's equity in this venture almost immediately if the news from NOPTA is positive. Or do the farmout deal of the century to keep just a small slice of the action. BPH needs cash, NOT a mining exploration project.

Bounty is in a much, much healthier financial position obviously but is still a minnow in a big world of major projects should approval be granted. My main point here is simply that whatever happens, the financial mess that is BPH will have a very significant effect on Bounty's fate with PEP11 also. And the capital raisings required by either to stay involved in a successful PEP11 through drilling and into production are hard to contemplate. This is a shorter term DEAL and one we are hoping Breeze and Kelso can pull off. Notwithstanding all this, I'm happy to back them, but I wouldn't put the house on it.