Ann: Operations Update, page-6

While I gave you a TU, I can think of many other words that could have been used that would have ensured your grumpiness turned into something far more belligerent....

Everything is basically continuing as per the last update. I am very happy to see they have secured 3 more trucks, ensuring that a rate of 3000bopd can be reached in a very short period of time (although I still think it will take until June to actually hit 3000bopd, as things never happen exactly as planned), assuming that there are no issues with U4 & U5.

Without wanting to get to clinical, I note that the wording regarding the farmouts again mentions the 'form' of the deal/s. Clearly they have been looking at multiple formats for the actual farmout, i.e target by target basis, or perhaps allowing a J/V to farm into an entire tenement, but only have rights to the conventional targets etc.... Happy to know also that the DDGT 1 rig is secured for the coming season. Probably asking too much, but perhaps in the next update, they will mention that the rig will get its repairs/maintenance to ensure drilling can start before the end of May (too pessimistic I think).

Lastly, while, this won't be popular, I think Eric will 100% announce a small capital raising before the AGM. They simply have to, they do not have enough cash to pay for the testing and restart of production. They planned to have around $6-7m at the end of March, we are now into April, that could see them down to $3-5m. I expect $10-15m to be raised, hopefully via a rights issue, 1 for 10. at say $0.25. Do I want to see dilution.... NO. But... I am actually comfortable with it, as it would really only be aprox 10-12% dilution. Even though I have a decent holding in BRU, I have already made sure I have enough for a 1-10 raising cash wise. Have not sold a share, nor plan too. Upside is too big just with the higher oil price. Plus of course, we all know how the last raising played out.... (which could perhaps also explain BRUs share price holding up so strongly).

I am no seer, perhaps Eric can negotiate a farmout with cash upfront etc, perhaps BRU will recieve its R&D refund which could be substantial (I am guessing $5m), but... unsure when that can occur. I just know Eric will not allow BRU to be cash poor to such an extent.