Ann: September Quarterly Activities Report and Appendix 5B, page-27

Hi El Jefe, Bass Oil may be using an accrual accounting method; this means in the period that when a service or supply is rendered, the revenue is accounted for, and not necessarily when the actual cash is received. This also means that expenses for obtaining that revenue must also be matched in the same accounting period as when the revenue is reported. If this is the case, there will almost always be a difference in the figures on the income statement as "revenue" and the cashflow statement "receipts from customers". The "receipts from customers" is accounted for in the period when physical cash is received from customers, irrespective of when that service was supplied. Accrued revenue is slightly different from accounts receivable, as this accounts is for goods or services supplied on credit. Ofcoarse whether Bass Oil is using accruals accounting is IMO.

It will also be interesting to see how Bass will acquire new O & G properties in late 2018, early 2019 like stated, given the 2.6 billion shares on issue..