VALI from VEN pres..., page-24

Hi Cara,
So brokers value VEN's Vali 2C contingent resource of 18.9 Bcf (net) at $AUD 35 million risked.
My simplistic logic for MEL;

• MEL's 9.4 Bcf (net) share of Vali is worth about half VEN's share so $AUD 17.5 million risked.
• MEL's BYE shares are worth about $AUD 6.6 million at $0.16 cps (~41,069,000 shares).
• MEL's current MC about $AUD 8.2 million.
• Hopefully commercial, stabilised gas flow rates at Vali, after stimulation, are in the 1-2 mmcf/d (1000 - 2000 GJ/day) range.
• Gas priced at $AUD 9 per GJ = $AUD 9000 - 18,000 / day gross.
• Rerate for both VEN and MEL following commercial flow rates at Vali-1.
• Currently researching potential fracture stimulation gas flow rate analogues, proximal to Vali to get some idea of Vali flow rates pre-testing.

Currently accumulating additional MEL shares when I can in the 2.1 - 2.2cps range.



Kind regards OldGeo