Ann: Red Sky Completes Innamincka Licences Transfer from Beach, page-4

HiLFC!

Thanksfor the response, these ROG threads are way too quiet! I’ll try and answer your Qs to the best of my knowledge below (purely my opinion however).. Extracts from the original announcement regarding the Innamincka acquisition and the recent presentation:

Are they going to dothemselves or Jv

Ibelieve it’ll be a JV, hopefully with a big name in the area. Potential partners could be:

STO(Santos - let’s hope!)

BPT(Beech Energy – Ironic as ROG just bought the project from them).

CUE(Cue Energy - who Andrew Knox’s previous worked for)

ROGhave good management and a good geo, but will need to significantly increase itsworkforce - at the moment I don’t believe it has the capacity to rapidly expandin order to go it alone. Just my opinion.

trying tounderstand what Co means by recommissioning asap

To get theproject back up and running - the work to start it up again. From what I understand, the oil was tight and hard to pump with the current vertical wells. Horizontal wells should be better (requires drilling), but when I spoke to Andrew, he said he had other plans that may get the vertical wells more productive (not sure what). FYI - before Beech ceased the production, the output was c. 200 barrels /day.

Wat time frame arewe looking at?
Cost?

About3-6 months at a cost of $1m I believe (based on previous announcements):

This deal seems toogood to be true imo

A near ready to go advanced O&G asset
Yeah - that’s what got me interested in ROG. But from Beech Energy’s point of view – the Innamincka Dome project was a just a peripheral asset of no significant value (tiny asset for a $4.5 Bil MC company), hence they didn’t get the economies of scale to pursue this project and were happy to write it off their books for $1.00

How much revenuewould it bring in


Let’s just work with the FLAX oil - assuming 200 barrels / day, with a price of $50/barrel

= 200 x $50 =$10,000 per day

= $3,650,000/ year

Just a rough guess/onlyfor exercise.

Time for research

Comments welcome

Hopethis helps!

Cheers

MSN