Member Info for CRUITHE

MT, my initail thoughts were that production may commence sooner, and it hopefully that will be the case. The weather however may come into play wrt to access for delivery of the production plant. The 36-2 pad is reasonably close to the main highway (circa 5 miles), so weather may not impede operations. r.e JV/investor, I believe that any potential partner may want to see production first, additionally CH may want to see the SP at a higher base level (which production will bring) to negotiate any deal from the strongest position possible. The offtake agreement, which we have been informed is "very near term" should be a catalyst for increase in SP, as we'll all be able to make rough calculations on annual revenue once that detail is promulgated. I firmly believe that the next few weeks will be transformational for the company, with concluding the offtake the catalyst.

Thoughts?

Offtake agreement concluded - 3 to 5 wks

Additional acreage secured - 6 to 8 wks

Production plant commissioned/approved - 8 to 12 wks

Commence production - 12 to 16 wks (initial 3 wells)

Partner secured for wider development - 16-20 wks

Hi NtD,

The company own the gathering systems which are already onsite, although the company had some work to do reinstating part of the gathering system at36-2. In todays interview CH clearly stated that company engineers had been onsite and and completed all the work that they could do themselves. CH was also clear that company had completed their engineering work for the processing plant. The company must demonstrate that gathering & processing systems comply with Federal, State and Local regs to achieve regulatory approval, CH was IMO right to caveat that the company see this as near term, but they are dealing with the Govmnt. I felt it was a good update overall. More acreage improves the economics of a wider development, and we now have funds available to take part in the next bidding round. VERY near term update expected on offtake agreement. As per last update, clearly can't speak about negotiations with interested parties, but pressing on regardless. Company currently valued at less than our current nonop portfolio.

Hydras, whats your take on the reason for the doom and gloom given we are at the point where the asset will be monitised? Surely nothing as fickle as comms not being how a multitude of different people would prefer them to be! The instrinsic value of the underlying asset doesn't change because negotiations/comms take longer than PIs would prefer, that would be absurd, we either sell the lot, JV with an entity, or plod on ourselved. Genuinly curious

Transfer of wealth from the impatient to the patient!!!

I'd happily aacept 15-20p for a take out now before the year is out, any less than that then the longer slog it must be. Still an absolute bargain at today's SP whichever way you look at it. We have a decent revenue stream so we aint going bust in a minute, we have a stonking asset and we are not beggars. Decent place to be.

I don't belive that's how it will play out now Hydras. If there are, as CH stated in recent communication to the market, multiple parties enaged with the Data Room and in further discussions, I would expect to see a notification of an agreement of heads of terms before the year is out, moving on to a formal agreement. If it's a JV then we'll see things move on a pace with a well defined programme, if we're being taken out then we'll know the price. Our management team will only attempt to move forward alone if no-one is interested, in which event it will be a much longer slog, but doable. If there's still radio silence on an interested party by mid december, then I'm assuming it's a slog for us, in which event we'll start to hear more about what the solo plan looks like. This was always meant to be punted on or become a JV from the outset. The direction of travel will be known soon enough, after which the detail will follow. I'm sure they already have detail price/delivery for infrastructure/services etc, but why promulgate that when a JV or sale is potentially in teh offing.

- Price of natural gas on cusp of hitting 3 year high

- Local and export gas markets available to company, with potential for local novel solutions

- Local demand for light condensate in US heavy oil production facilities

- Impressive acreage already secured, with company actively seeking to increase acreage

- Some production plant owned, actively engaged with supplier for remainder

- Processing and offtake infrastructure close to acreage

- Recently increased non op assets

- Increased multi year revenue stream, bolstering balance sheet/negotiating from a stronger position

- Fantastic CPR

- Data room opened 4 weeks back, with multiple parties showing interest

The path to get here has been far longer and more eventful than I'd anticipated back in 2020.

However, I do believe that the company has played the hand they were dealt rather well, room for improvement WRT communication.

I'm sure that there are many small exploration/production cos out there would have diluted their PIs out of existence, which is not the case for us.

The belief that Data Room review and negotiations with multiple interest parties would be concluded in a minute is for the birds.

Zephyr in best position to date. This SP is a gift.

Davwal, strong words!

I feel both presumtive and deragotory towards the Zephyr team. Working on a "suck-it-and-see-basis" when no deal has been done. Are you aware of something that the market isn't? If so, please may I ask that you share that info/detail?

BB, I like everyone else, and I would include Zephyr management in that (although they may have some broad understanding), do not know the specifics of a deal that hasn't been concluded. All I know is what the market has be informed of, which is that if a deal is done we will receive a certain % of producton at the outset which will increase at a break point in production which will be spcific to the well/wider deal in question. I do not see anything untoward in that, there is no deal so no specific detail. I believe the Zephyr managment have done very well here, they've got an investor with a significant amount of money to put in play, and we will benifit financially without having had to put put our money on the line. What I do want to know atm is if we may be considered to act as the operator on any of the wells in any deal done, as there will be

additional upside for us.

Davwal, interested to understand what level of detail you expect to be promulgated before a deal has actually been agreed and signed off.

H1 $9.9m, H2 $13.9m, FY $23.8m excl any potential upside from ZepHawk at back end of year!

Ok

Thats exaxtly how I read it, there are 18 development wells available should the investment partner wish to proceed with some or all of them via the ZH vehicle. Pretty sure that's what I wrote in my previous post, apologies if that wasn't clear.

My uderstanding from the communications issued by the company are that we source the oppotunities for new wells. Which we have, potentially 18 within the Acquisition we have announced today if the partner wishes to proceed with them all/some. If they wish us to be the operator, as the partner has no desire to do so, then we will receive a fee for being an operator, fair price would be mid teens % of production. Wether or not we are operator, there will be a break point at which we receive a % of the revenue for each well, the % of which to be agreed when a well deal is done. In addition to that we have an option if we wish to participate upfront in a % of any of these wells. Does your understanding differ from this, as this is my take from the RNS to date.

I don't disagree with you DXB1, Paradox is the priority, and I'm as disappointed as other investors at the setbacks and disappointments that we have had to overcome to get to this point. We did overcome them though, where other companies may have gone bust or significantly diluted their shareholders attempting to recover, the only significant dilution we saw during that period was for this recent acquisition. We clearly need a major investor for the Paradox development and when we enter into neogotiations with potential investors it must be from a stronger position than where we were at a few weeks back. I firmly believe the deal concluded today and all being well the near term Hawk deal strengthens the company ahead of any negotiations.

pleasing to read the the acqisition has been conluded. bit of bonus that ch has divested the assets that he did. we were always gonna be on the hook for the operation and decomissioning costs of those, clear guidance on the projected decomm costs, which is already accounted for in the deal and we're saving on ops costs. *** packet 8-9 million $ gross/annum additional revenue? potentially gone from 5 wells to 18 to boot with hawk, nice, as an operator only we should expect circa mid teens % revenue, plus additional if we wish to particpate further, clarity on the breakpoint for recieving further % should we not elect to participate further will be promulgated once the deal is done. cpr to follow imminently, and more detail on paradox progress. keep the news/detail flowing please ch.

It isn't quite the full article, and the supplemental data/figures are missing. Thats $30 from Elsevier. As Zephyr contributed, I've asked the company if they are able to post the full article on their media page. I suspect not, be stealing Elsevier's lunch money!

Https://www.sciencedirect.com/science/article/abs/pii/S2949891025001939

I was under the impression that we done enough with Salt Wash to kick the can down the road until we had investment to drill/time to focus on it; anyhoo uneccesary distraction and noise atm. The two very near term revenue streams of the new acquisition and Paradox prodution will be boxed off within the coming weeks. with revenue from new acquisiion backdated to 1st June. I'm sure investors would much rather see the company focussed on bolstering the cash flow & reserves in the near term, as opposed being distracted with a venture that we don't have the means to execute.