From DEC qtr report ---8.4mill in cash

Exploration
During the December 2017 Quarter we continued flow back operations from Tamarama 1. The well
continued to improve gas flow to surface, which was in line with our expectations. The plunger lift
system was successfully operating on the automated flow and buildup cycle mode during the quarter
and continued to meet our expectations.
Preparation is well advanced for the drilling of two additional appraisal wells - Tamarama-2 and 3. We
are expecting significant improvements in wells production performance benefitting from a
combination of factors, resulting from our research and data obtained from Tamarama-1 including
design, completion and fracture stimulation methods. We believe this will greatly enhance the
economics of the Windorah project.
Well sites location have been selected and cleared with relevant approvals in place including cultural
heritage clearance and landholder access. Longlead items such as casings and wellheads for the drilling
program have been purchased or secured. Real Energy has not yet contracted a drilling rig but has
been in discussions with several drilling contractors. We have rejected a proposal that included
mobilisation and demobilisation that was in excess of $2.5 Million. A more recent proposal has
significantly reduced this cost with discussions continuing. We are hopeful that we can finalise
negotiations on this rig shortly