Ann: December Quarter Report, page-5

Have to say I am pleased with the steady as she goes report. Expected nothing different.

Couple of highlights not expressed, which to me are selling points.

(a) On oil, field Operating Netback was $50.34/Bbl (way ahead of my modeled $31/Bbl)
(b) Estimated$6.29/GJ for sales gas
Qtr Sales of $16.8M from O&G
less 75,400 BO x $80.84
equals $6.095M for gas sales
divided by 1.7PJ of sold gas
equals $6.29/GJ
roughly speaking

and is before the new long term agmt comes into play.

My model uses $3.41/GJ as the operating netback for C-H (which kicks in from Mar 2018) and $5.41 for spot sales (intentionally conservative on pricing IMO) going into the Jan - Jun 2018 half year. Expectation is for $8/GJ kicking in for the LT GSA pricing & therefore $4.59 as op costs (applying same processing cost at Iona as for Orbost .... aware that COE owns interest in Iona facility). Just looking for the workover to keep production at ~2PJ/Qtr and no more spot sales I guess with Origin taking it all from March.

Looks like all going to plan.

Come on down Ocean Monarch.

GLTA