ENB/UIL Ocean Hill #2 sale, page-2

Reply from Stuart Nicholls
Managing Director & Chief Executive Officer




Question 1: If you sell your UIL shares to STX do you still receive the CLASS B pref. shares (not yet issued) in UIL should the Ocean Hill #2 well be sucessful prior to 31 December 2019 ? also....



If you accept the Ordinary Share Offer (for your UIL Energy Shares), subject to the satisfaction of the conditions of the Ordinary Share Offer, for each of your UIL Energy Ordinary Shares you will received 0.485 Strike Energy shares. If you accept the Preference Share Offer (for your UIL Energy Class B CRPS), subject to the satisfaction of the conditions of the Preference Share Offer, for each of your UIL Energy Preference Shares you will received 0.485 Strike Energy Milestone Options. The Strike Energy Milestone Options being offered as part of the Preference Share Offer are effectively a replacement for the existing UIL Energy Class B CRPS and are subject to similar conditions (refer to Schedule 3 of the Bidder’s Statement prepared by Strike Energy for further detail). Acceptance of the Ordinary Share Offer and acceptance of the Preference Share Offer require separate action.

Question 2: If STX was to receive 90%+ acceptance and removes UIL from the ASX what happens if the
Ocean Hill Well #2 is successful at a later date and UIL (now not in existance) has to issue CLASS B pref. shares ?


The Strike Energy Milestone Options being offered as part of the Preference Share Offer are effectively a replacement for the existing UIL Energy Class B CRPS and are subject to similar conditions. Please refer to the Bidder’s Statement prepared by Strike Energy (in particular Schedule 3) and the Target’s Statement prepared by UIL Energy for further detail.

Question 3: When is the Ocean Hill No 2 Well expected to be drilled ?


Ocean Hill is one of the lead prospects of the UIL portfolio and Strike intends to continue the exploration program over both Ocean Hill and the EP495 permit.

Currently the block has a commitment of 250km2 of 3D seismic which is required to be shot by May 2019 and with the follow on well to be drilled the following year in May 2020. These commitments are the regulators minimum requirements for the block and do not stop Strike/UIL accelerating the well or the seismic in 2019/20.

Ocean Hill due to the commitments and the additional CPS framework (success prior to Dec-19) will be de-risked as priority in the combined portfolio through advanced geological and geophysical programs in order to assess the viability of drilling the well within this timeframe and or substituting the seismic in order to being the well forward.

Strike is committed to realising full value from its acquisition / combination of UIL and progressing Ocean Hill is very much a part of that strategy. At this time I cannot give you a definitive answer on the drilling timing, until such time that the above mentioned technical work is completed. I am happy to engage on this topic throughout the remainder of the offer period and into the combined operations should the offer be accepted.