Member Info for Scot126

16:13

Fact check for Sharebel - there is no Aussie-based boiler room scam. Speaking personally, I am not employed by any individual or corporate entity. You'll have to ask other posters if they fit your fantasy.

88E's mkt cap has reduced sharply because the flow test results were disappointing *and* many shareholders have calculated that the company will effectively run out of money by the time it pays the bills for this winter's operations at Hickory-1. Shareholders have been confronted by the scientific data and have voted with the sell button.

There is no grand conspiracy with market makers stealing from you. There are more sellers (by volume of shares) than buyers (by volume of investment size). Plain and simple. Forum members would do well to quit the conspiracy theories and acknowledge the situation 88E finds itself in.

As John Maynard Keynes is often credited with saying: “When the facts change, I change my mind. What do you do, sir?"

The facts of the 88E investment case have changed radically. The sellers have changed their minds. What do you do, forum members?

16:07

Goldwater - you do realise that your figures take no account of the activity and costs required to actually get the oil out of the ground, treated and then transported via TAPS to market? I mean, are you being serious here? Do you expect the well not to cost a penny? Do you expect 88E will be gifted the steel pipes for free? Do you expect the drilling, fracking and production contractors to work for free? Do you expect the State of Alaska to give 88E a free pass on paying the state their share of royalties and taxes?

C'mon Goldwater, you cannot possibly believe your calculations are in any way realistic?

14:42

Goldwater - that is by some considerable margin the most ignorant post I have read on this forum. Forum members - buy/sell/hold 88E but please do not base any decisions on the "calculations" posted by Goldwater @14:42.

70 Bopd x 6=420 Bopd = 100 Dollar a barrel [70bopd was a peak rate, yoiu cannot rely on this figure for production or revenue modelling. The ambiguous, at best, data from Hickory-1 suggests a Long Term Production Test (LTPT) of each reservoir is required before you can make extrapolations like 70x6.]

42,000 Dollar a day.x 365 = 25 million Dollar a year. [Ok, your POO is inaccurate. When analysts model future wells, they normally use the forward curve. You should use $70-$80 or thereabouts but hey-ho. But let's continue with your fantastical 420bopd and your $100 POO, ok? $42k per day or $25m per year, you say? That is ridiculous, completely ignorant. Putting aside for now the capex required to build pads, drill the wells, treat the oil/gas/water, etc, etc what about the opex required to maintain the operation? What about the royalties to the State of Alaska? What about the local taxes? Jeepers creepers.]

If 12 time = 50 million Doller a year output. [same as above but larger dollop of fantasy.]

All - please ignore Goldwater's post. Made up drivel.

15:41

Victorcalin - can't come up with any intellectually-based content so let's abuse another poster. Yep, that'll do it.

How about forgetting the abuse and come up with a cogent solution for the bind 88E finds itself in?

15:38

Fact check for Killerpidgeon? False. I have no short position in 88E.

Now then, Killerpidgeon, do you think Burgundy will pay US$3.625m to 88E by the end of June'24? Do you agree that, on the current formal company guidance, the company will be insolvent by the end of June'24?

If you answer yes to the questions above, or even if you are concerned the above may be correct....why on earth would you buy 88E shares today? It is still overvalued v's its direct peer and it's running out of money. A steeply discounted fundraise is, IMHO, going to be required in short order.

If you don't think 88E are in immediate trouble, what's your solution? I'm all ears.

[Part 3, continued from Part 2 below]

*If* my calculations above are anywhere close to being correct, then I contend it is the responsibility of the BoD of 88E to seek fresh equity capital immediately.

I calculate 88E is insolvent or is about to become insolvent. The only way IMO to stave off insolvency in the very short term is to raise fresh equity capital. If such a cash raise is being organised, it will not be attempted at 0.21p. It will have to be priced at a sufficient discount to attract new capital from investors who will see that the Hickory-1 flow test data doesn't look too clever. There's also the impending vote on consolidation to consider.

I assess that 88E has drilled its final well in Alaska as operator. 88E needs to recapitalise itself and Namibia will become the primary narrative on which the 88E investment case will be reconstructed (more on that later). That's if the company survives this current cash crunch.

Net, net, net? A fundraise is, IMHO, heading your way right now. It will be done at a steep discount IMHO. 88E’s Alaskan assets will be diluted massively.

If you genuinely like these Alaskan assets, the market is offering you a mathematically bizarre opportunity to swap your exposure to the same asset by selling a lower quality 88E barrel for 16.4p and buying a higher quality PANR barrel in the same formation for 14.1p. For those fundamental investors who remain here, this strategy offers the best mathematical option to see your knowledge of the Alaskan assets rewarded.

I would not have posted this content in such a blunt fashion had it not been for the guys spreading made up nonsense and straight out lies on other forums. I don't lie for my own financial benefit. I find it contemptible to do so. I haven't done it on this forum, you all know that. Make of this what you will.

There is no mathematical rationale for buying 88E shares at this price. Unless you believe in the Fairy Godmother, 88E will be conducting a heavily discounted fund raise in the next short while. Even if you are wedded to 88E until the bitter end, why would you not sell some/all your stock today and buy back into 88E once they raise some cash? /end

[Part 2, continued from Part 1 below]

Cash at hand.

More sophistry from 88E. Cash at hand on 31/3/24 was US$11.3m (AU$17.5m). The outstanding amount due to be paid for the Hickory-1 operations is US$11.6m (US$2.9m already paid). I fully accept that, on the face of it, Burgundy’s share of the total costs for this season is US$3.625m. But here’s some information that is really, really, really important for forum members to understand.

1) As the operator, 88E carries the legal responsibility to pay the Hickory-1 bills in full. If they stiff the contractors in Alaska, it’s a small population and good luck finding anyone to work for 88E in Alaska ever again.

2) If Burgundy doesn’t like the look of the data from the flow tests (and why would they?) then they can simply walk away from the project and their working interest reverts back to 88E. NB NB NB In walking away, Burgundy would not be paying 88E US$3.625m and 88E ***would have to pay the full gross costs of the Hickory-1 bills***.

My *opinion* is that there’s not a chance in hell Burgundy will pay 88E US$3.625m by the end of June ‘24, when 88E inform us they expect to settle the outstanding bills. I guess there is a small possibility Burgundy will pay some or all of the US$3.625m once the comprehensive analysis of the flow test data has been completed. However, examining Burgundy’s historical conduct, they only paid the final tranche of the outstanding balance of their share of the cost of *drilling* Hickory-1 in February ’24! Even in the unlikely scenario where Burgundy does end up paying 88E its share of the 2024 costs in H2’24 or H1’25, in the meantime 88E’s short term cashflow suggests the company looks to be in significant trouble.

Put even more bluntly, if Burgundy doesn’t pay 88E some cash in the next ten weeks and 88E pays all its Hickory-1 contractors on time, then 88E will have no cash left until it receives a Q2 dividend from Longhorn. There won’t be any cash to pay salaries and other essential items. The business will, in effect, be insolvent.

I will examine 88E’s outgoing commitments in a future post.

[End of Part 2, see above for Part 3]

These posts contain important information and analysis, and should be taken very seriously indeed.

The arrival of the Q1 Report overnight was excellent timing for anyone interested in the *facts* of the 88E investment case. Taximan57 was either incapable or unwilling to work out the revenue associated with 88E's share of Longhorn's production so, being the generous guy I am, I thought I'd take a moment to work it out for him.

Guidance from the Q1 Report informs us that Longhorn gross production for Q1 was 328boepd = 328 barrels of oil equivalent per day. We know 88E’s Working Interest (W.I.) in Longhorn is 64%, so that equates to 210boepd attributable to 88E. Ok, so far?

We were also informed the ratio of oil to gas was 62% oil, 38% gas (down from 70% oil when 88E initially acquired its interest in Longhorn in Feb’22…hmmm…..). Using POO of US$85 and gas price of $US3.00 per MMBtu, that equates to revenue to 88E of US$12,504 per day from 88E’s 64% W.I. => US$1,140,990 for the quarter. Once again, ok so far?

Out of that production revenue attributable to 88E, we must deduct: 88E’s share of opex; 88E’s share of Texas royalties payable; 88E’s share of local taxes; 88E’s fee to the operator for running the asset. We know 88E received US$451k (AU$700k) from Longhorn for the quarter. Quite a few deductions from the headline revenue figure, eh?

If Longhorn was performing as originally guided in Feb ’22 (c.600boepd gross production, 70% oil), 88E should have been paid a Q1’24 dividend of c.US$1m. Instead, 88E has invested c.$US15m in Longhorn which is 50% more than originally budgeted, with a further potential investment of US$3m to come in H2’24. At time of writing, and very roughly, 88E management has gone 50% over budget on Longhorn and despite that is receiving 50% less dividend income. Is anyone in this forum prepared to voice their concern at this point?

Let me be crystal clear. The income from Texas might just about cover G&A and maybe some annual lease fees. If you read the above and still hope Longhorn will make a dent in the cost of 88E’s planned exploration activities then you cannot do maths.

[Part 1, see above for Part 2]

06:50

Quite right, DrMicho. I also think "funding news will be released soon." After the 2 inbound IERs on the Ahpun Topset and Alkaid ZOI we could hear about a vendor finance deal signed with a "large" OFS firm.

Then we could all be reading about the Alaskan gas pipeline where PANR has already agreed terms with the AGDC for a long term (20 years?) take or pay arrangement. If the pipeline is given the go ahead, and the Governor of Alaska certainly believes it will happen telling CNBC to expect news in the next couple of months, then the SoA/AGDC/Alaskan utility cos will act as guarantor/arranger of a facility with an Alaska bank for up to $250m.

Exciting, isn't it, DrMicho? Question for you. Say PANR closes at 35p on the afternoon of Day 1. At 7am on Day 2 there's an RNS confirming the pipeline has been given the go ahead. Do you reckon PANR will a) double or b) treble in price by the end of Day 2? Could you imagine being short on the morning of Day 2? Could you imagine having no exposure to PANR's investment case on the morning of Day 2? But that's what you're advocating, DrMicho.

Yikes.

23:05

Why Richar? Give the forum one honest, truthful reason why olderwiser should be banned from this forum? Has he spread false or misleading information? Nope, exactly the opposite is the case

Listen up, Richar. Just because you do not *enjoy* reading the facts of the investment case of a stock in which you have freely elected to invest *does not* mean the author should be banned.

Where is your righteous indignation at the multiple prolific posters on this forum who would have you believe the flow test results were good (they weren't); that the company isn't running out of cash in the next few weeks (it is); that the downdip portion of these shared reservoirs is the superior location (it isn't); that it's no big deal the 88E executive team hasn't invested a single dollar in the company's shares (it is a big deal in listed small caps); that it's no big deal the MD *elected' to take his bonus in cash rather than shares (it is a big deal); that it's no big deal the Board permitted the executive employee(s) to sell their performance rights in early 2024 (it is a big deal); that the company is being fully transparent with its shareholders and the wider market (it isn't, otherwise they would have issued a correction RNS); that Longhorn is performing well and will be a substantial contributor to 88E's future exploration costs (it isn't performing as planned and it won't be contributing to anything other than management's salaries); that it's no big deal if Burgundy Xploration defaults (it is a big deal); that 88E is undervalued in absolute terms (it isn't) or that 88E is undervalued v's PANR (it definitely isn't); that there is some great conspiracy involving a boiler room and market makers who are stealing your money (there isn't a conspiracy and I am not stealing your money....I was literally begging forum members to google Dmax and updip/downdip for months and months) .........those are the folk you should be screaming about, not the fundamental investors/analysts who have spent hundreds of hours researching the asset and analysing the two companies.

Grow up Richar. You're an adult, yes? Then put your big boy pants on and accept responsibility for your decisions. Oh, and contact the Chairman of 88E to ask for full transparency around the flow test data and whether the company is insolvent.

And quit abusing people online. It's classless.

19:50

Taximan57 - do you mean something like stock being held in escrow by a law firm or a bank? If that's the scenario you have in mind then I would have thought the shares would be held in the law firm or bank's nominee account.

There's no such thing as a Texas BOE. How can you post on this thread with such confidence when you don't know something as simple as this? Seriously?

Look up 88E's guidance on oil:gas ratio produced. Yes, such guidance exists....do the research. Dead easy to find. Think Google how much gas equates to a US barrel of oil. Then do some maths.

18:42

Taximan57 - this isn't like you. That post timed at 18:42 is a bare-faced lie. For goodness sake, Taximan57, It's right there in the new presentation pack.

1) 88E is targeting GROSS production from Longhorn of 600-675boepd by the end of 2024. Two questions, Taximan57.

- a) What's 88E's percentage ownership of the Texas assets? It's not 100%, it's 64%.

- b) There's a big difference in dollar value between a barrel of oil and a barrel of oil equivalent. Do you know that,

Taximan57? What's the guided ratio of oil:gas contained within those Texas barrels? You need to look that up and

work out the value of 88E's 64% share of the production of 600-675 boEpd and revert back to us. I suggest you

withdraw your post so you don't un/intentionally misinform your fellow forum members.

2) Do you think it's acceptabel for you to misrepresent 88E's management's formal guidance. I quote: "Net 88E cashflows

of c.US$3m expected in 2024, provide funds towards exploration and appraisal."

Yet more obfuscation from 88E management. Will c.US$3m dividend from Texas cover 88E's G&A/lease payments/listing costs/travel/office rent? Will it leave anything for future operations if 88E has to pick up the tab for a defaulting Burgundy?

No, thought not. This forum has got to do better. Have whatever hopes and dreams you heart desires but for goodness sake, the facts are right there in the presentation pack today.

18:12 and 18:23

Ayecuramba & chrisev1 - infantile rudeness as usual. Tiresome but you do you.

- Do either of you calculate 88E is, or will shortly be, insolvent?

- Do either of you assess the flow test data points to commerciality being declared?

- Do either of you believe a downdip, lower classification 88E barrel in the ground should be valued by the stockmarket at a premium to an updip, higher classification PANR barrel in the ground?

- Do either of you feel it's time to ponder why Ashely Gilbert didn't support the fundraise at 0.23p in Q4'23?

- *If* it turns out Ashley Gilbert and other 88E employees sold £200k worth of performance rights in January '24, will both of you be a) furious b) shocked and furious c) shocked and furious and rushing to contact the Chairman to ask what the hell is going on d) think everything is groovy and it's all the fault of an imaginary gang of boiler room scoundrels working with their market maker mates?

I hope and trust a large number of forum members acknowledge that, whilst they might dislike reading my posts, they acknowledge that I don't seed the forum with lies or made up fantasies. I'm addressing those folk now.

I "get" that some 88E shareholders think 'revenge' when they see the names scot126, olderwiser, rabito79 and others. Some have started posting lies and made up gibberish on PANR forums. Thus I am compelled to point out the following in the starkest of terms.

I fear 88E is insolvent or is about to become insolvent. The only way IMO to stave off insolvency in the very short term is to raise fresh equity capital. If such a cash raise is being considered, it will not be at 0.21p. It will have to be priced at a sufficient discount to attract new capital who will see that the Hickory-1 flow test data doesn't look too clever. There's also the impending vote on consolidation to consider.

I assess that 88E has drilled its final well in Alaska as operator. 88E needs to recapitalise itself and Namibia will become the primary narrative on which the investment case will be reconstructed. That's if the company survives this current cash crunch.

Net, net, net? A fundraise is, IMHO, heading your way. It will be done at a steep discount IMHO. Your Alaskan assets will be diluted massively.

If you like these Alaskan assets, the market is offering you a mathematically bizarre opportunity to swap your exposure to the same asset by selling a lower quality 88E barrel for 16.4p and buying a higher quality PANR barrel in the same formation for 14.5p. For those fundamental investors who remain here, this strategy offers the best mathematical option to see your knowledge of the Alaskan assets rewarded.

I would not have posted this content in such a blunt fashion had it not been for the guys spreading made up nonsense and straight out lies on other forums. I don't lie for my own financial benefit. I find it contemptible to do so. I haven't done it on this forum, you know that. Make of this what

[Part 3, continued from part 2 below]

There is no market maker conspiracy. The market makers don’t have enough capital to play the character of the evil puppet master hiding behind the curtain moving the share price like a pawn on a financial chess board. I’d be surprised if they’re permitted to apply much more than £20k of their firm’s capital on 88E at any one time. Please accept the fact the SP is where it is because a large number of your fellow shareholders around the world have read the results, interpreted them, digested them, accepted them….and then decided to sell all or part of their holding. As for buyers? If they’ve done a little reading and worked out the company is worryingly low in cash…..well, why wouldn’t they wait on the sidelines until that matter is addressed by the BoD?

I hope this post has assisted some of you. /end

[Part 3, continued from Part 2 below]

[Part 2, continued from Part 1 below]

The flow test results are what they are. I fully appreciate they're disappointing to shareholders but denying their veracity or refusing to acknowledge the facts are not going to help anyone, or the company for that matter.

This point is a tad more esoteric. Clear your minds for a moment....be prepared to consider a theory which you possibly hadn't been prepared to countenance until now.

Ok, the SP today isn't wrong or a conspiracy by market makers or the results of a nasty short attack by evil posters like scot126. No, the SP was actually wrong ***BEFORE*** Hickory-1 was drilled, ***BEFORE*** before Hickory-1 was flow tested. How so? Ever since the Dave Wall days and the US OTC punter tsunami of 2021 88E’s stockmarket valuation has contained a large and wholly irrational speculative element caused by a shareholder base which is, ON AVERAGE, disinterested in the fundamentals of the 88E investment case. Whether forum members like it or not, the science is incontestable. PANR’s volume *and* quality of oil in the shared reservoirs is at least 8-10x greater in scale ***and*** the quality of those barrel is higher (better perm and porosity, producibility, shallower, lower Dmax => classed as commercial). To my astonishment, a downdip lower classification 88E barrel at Phoenix is still, *even after* the flow test results, trading at a mathematically unjustified premium to a fully diluted, updip, higher classification PANR barrel in the ground.

Please don’t cry out in fury and wish my family ill-health and all that horrible stuff. The 88E mkt cap was irrational back in 2021, it was irrational before the flow tests started and it’s completely ludicrous now we know the results and the company’s cash position.

Keep the open mind a little longer please. If you bought 88E shares above 0.21p, then it was *your purchase* which was irrational. It was *your purchase* where you (unwittingly?) paid for a share with an unjustified speculative element contained within it which was completely divorced from the fundamentals of the investment case. Once you acknowledge it was the *purchase price* where you made an error it becomes far easier to acknowledge the market’s reaction to the flow test results.

The flow test results forced a large number of 88E shareholders to confront head on some facts which they had either *hoped* would never arrive; or had feared would arrive but shoved their head in the ground; or had miscalculated badly the risk of these results if they had attempted to analyse the potential outcomes in advance of the operations.

[Part 2, see above for Part 3]

The cash at hand on 31/3/24 was AU$17.5m or US$11.3m. 88E informs us the gross cost of this winter's operations at Hickory-1 is US$14.5m. 88E's share of the costs (c.75%) is US$10.9m. If Burgundy assess the flow test results are poor, they will default on their 25% share of the costs. People will recall the difficulty Burgundy had in sourcing finance for their share of *drilling* Hickory-1 last year. The final instalment from Burgundy *for last season's costs* only arrived in mid-February '24. My *opinion* at time of writing is that it is a probability Burgundy will default on their 25% share of the flow test costs and their 25% share of the Working Interest will revert back to 88E.

88E, as the operator, is contractually responsible for paying the full gross cost of US$14.5m. 88E management has unhelpfully (but unsurprisingly) not informed shareholders how much, if any, of the US$14.5m bill has been paid by the 88E to the contractors in Alaska. Very simple maths suggests 88E are today looking into the face of insolvency.

Why hasn't a member of this forum itemised 88E's future financial commitments for the next 6, 12, 24 months? What's the G&A in the period? What are the lease payments? What has 88E committed to invest into the Namibian project, and when is the deadline for payment? Yes, there's a US$5m debt facility in Texas but has anyone confirmed with 88E management whether Longhorn may only draw on it for capex costs related to the workover program or to fund the two new wells?

And after all those perfectly reasonable questions of fact listed above, there are still posters on here urging forum members to hoover up the shares???? These posters know fine well what is coming down the tracks towards shareholders. Their behaviour is highly questionable.

sharebel is possibly the most prolific on this forum when it comes to repeating, ad nauseam, the cultish chant that the flow tests results were positive, great, excellent, good news, etc, etc. This is anti-science gibberish. If sharebel and others were correct, 88E would have issued a correction saying the stk barrel figures were typos. Or their NOMAD would have forced them to issue a correction. Or they would have devoted a slide in their presentation deck to taking shareholders through the results in easy to follow tiny steps. What's been issued by the company or NOMAD? Nothing. Nothing.

[Part 1, see above for Part 2]

11.10

Redirons and Ausnsw - that is what's called a lie. I have not filtered anyone on lse. There are two reasons for this. The first is that I do not know how to filter someone on this website. The second is that I read every post on this forum.

Moving on to far more important matters. The cash at hand on 31/3/24 was AU$17.5m or US$11.3m. 88E informs us the gross cost of the winter's operations at Hickory-1 is US$14.5m. 88E's share of the costs (c.75%) is US$10.9m.

However, and this is really important, 88E is the designated operator at Hickory. As such, they are responsible for settling all the bills for the operations. They will then approach their non-operator partner, Burgundy Xploration, for their share of the costs (US$3.6m). It took around a year for Burgundy to settle its dues after Hickory-1 was drilled in Q1 2023. It was blatantly obvious Burgundy had difficulty sourcing finance in that instance. Bearing in mind the results of the two flow tests, there has to be a serious possibility (probability?) Burgundy will default on its 25% shares of this season's costs.

Burgundy are entitled to the full data package from the Hickory-1 flow tests. *If* Burgundy also assess the results are disappointing then they can inform 88E of their intention to default. In so doing, Burgundy will then give up their share of the working interest in the leases, which revert back to 88E.

But look at the maths. Most unhelpfully, 88E has obfuscated once again. The slide pack does not inform shareholders if the cash at hand is before it has paid its contractors any money this season. Has it paid some invoices or none at all?

If 88E is still to pay the full gross amount of US$14.5m then, unless Longhorn has had record production in Q1'24 and kicked in a super-sized dividend, there is a genuine fear 88E is, or will shortly be, insolvent.

There is little point ignoring this situation. I suggest UK/Aussie shareholders contact 88E's chairman to confirm the company's cash position.

*If* the scenario above is half way accurate then forum members must ask themselves how 88E plans to finance its commitments to the Namibia project. How will it pay its lease costs. How will 88E pay salaries and listing costs?

There's normally a very limited list of imminent actions a company can take if the above scenario is accurate.

88E is overvalued at the current SP IMO. Sharebel and others scream that's not true. Ok then, sharebel, where's your SOTP analysis of 88E? Stop playing the man, do some proper research and analysis, and tell the forum why the current mkt cap is justified? Also, tell the forum how 88E is going to pay its bills? Does 88E have enough cash to keep going?

Less abuse, more research.

10:44

Here's another silly fellow. Silly Stas has trouble reading, listening and understanding. Silly Stas thinks the $250m he heard about in the webinar was the *required* amount to move PANR to FID and a self-financing Ahpun development. Silly Stas, despite it being explained to him in detail yesterday, doesn't realise that *If* the Alaska gas pipeline goes ahead, $250m would be the approx size of the facility the SoA/AGDC/utilicos would guarantee/arrange for PANR to draw on to move its project forward. Silly Stas doesn't understand the difference between "modelled amount required for FID" and "size of bank facility made available to PANR *If* the gas pipeline gets the go ahead". What a silly Stas.

Silly Stas then compounds his error by using the $250m figure to dream up some fantasy corporate activity. Silly Stas has forgotten all about the vendor finance negotiations with a "large" OFS firm, where the OFS firm is waiting for the 2x IERs on Ahpun due imminently. Silly Stas also thinks he knows more than the Governor of Alaska about the proposed gas pipeline deal. Silly Stas has ignored entirely the terms of the recent agreement between PANR and the AGDC which described a gas deal which, *if* the gas pipeline goes ahead, would see revenue to PANR from gas sales alone of $500k per day.

Silly Stas is lashing out because he's angry. Silly Stas would be better using his time to work out if, after 88E pays for this winter's operations at Hickory-1, whether 88E will be insolvent. Silly Stas publicly posts that 88E's troubles are down to evil PANR shareholders when, in his heart, he fears it's because he didn't do enough research on the geology of Project Phoenix despite being urged to do so for years.

Silly Stas is being silly and isn't taking responsibility for his decision to invest in a listed company. Don't be like silly Stas.

09:51

Silly darientaylor thinks PANR produces 200bopd. Silly darientaylor doesn't know PANR is not in production. Silly darientaylor said he was looking at the numbers. Silly darientaylor is just making stuff up. Silly darientaylor is a liar. Don't be like silly darientaylor.

- Beautiful looking slides, no question about that.

- No confirmation of commerciality. Producability does not equal commerciality. Crucial analysis to follow.

- No correction or explanation of alleged typos on volume of oil collected. USFS = 24 stk barrels, SMD = 4 stk barrels. Anyone holding on to the hope these were typos or that a reassuring explanation for these figures was on its way must now accept the central message from the two flow tests. It is time to confront the reality that the effects of Dmax on these downdip portions of the reservoirs are looking consequential and worrisome.

-Cash at hand is AU17.5m (US$11.2m) as at 31/3/24. The gross cost of the operations at Hickory-1, as advised by 88E, was US$14.5m. The slide, unhelpfully, does not explain whether 88E has paid any Hickory-1 flow test invoices as of that date. I strongly urge forum members to consider whether Burgundy are likely to deliver the cash to 88E as per their partnership agreement. If they decide the results don't justify any further investment (and keep in mind the difficulty they patently had in sourcing the cash to pay for their share of the *drilling* costs from 2023) then 88E are operating on fumes today. If 88E received a dividend from Longhorn in Q1, I calculate 88E *might* have about US$1m after they pay for the winter operations. If Burgundy aren't in a position to deliver on their contribution (25% of US$14.5m) then 88E as operator will be expected to pay all the bills. I very much fear 88E are about to, or already have, run out of cash. You all know what comes next. I'll leave it at that.