The Hawkeye-1 well has been completed and declared uncommercial. While encountering hydrocarbons, the volumes were at the very low end of expectations and were mostly water wet. The results will be built into the SC55 model and next moves there are being considered. Otto was fully carried for the well and so cash balances remain strong to develop the Tanzania and Alaska exploration prospects. Our core NAV remains A$0.04/share and RENAV, removing Hawkeye-1, adjusts to A$0.06/share from A$0.15/share.

Hawkeye-1 uncommercial

The Hawkeye-1 well has been drilled to a total depth of 2,920m and while logging hydrocarbons over a 27m interval, the volumes encountered were at the very low end of expectations. Fluorescence was observed on cuttings, an indicator of moveable oil, however below 2,737m the logs indicated water and the Hawkeye-1 well has been plugged and abandoned as uncommercial. Otto was fully carried for the well and so the impact on the balance sheet is less severe than on the share price and Otto remains well funded for exploration in Tanzania and Alaska, especially considering 75% of Alaskan spend is reimbursed.

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