Ann: Results of Meeting, page-9

Cityhunter ,

Even if Brent went to $100/bbl , U.S. light tight oil could still be $50/bbl at Cushing and $45 at the wellhead or less .

There is literally nowhere for U.S. light tight oil to go as the refineries are taking all they can , storage is quite full and the moment the price nudges up they start overproducing again .

To fix the situation the U.S. domestic light tight oil supply has to be reduced . Either the lenders and investors which enable drilling and completions have to cut off the money supply/ensure all cash flow goes to debt repayment rather than operations OR we have to wait for the sweet spots to be drilled out which for oil will most likely take 8-10 years .

The loan with Macquarie was meant to facilitate them to build scale .