DECISION MATRIX

Asset prioritisation · farm-out ranking · what-if scenarios · funding options

ASSET PRIORITISATION

Scored 1-10: Value · Cost efficiency · Risk tolerance · Urgency — higher is better

Asset	Value	Cost	Risk	Urgency	Total	Recommendation	NPV	Cost to ORC
Pilot (P2244)	9	10	6	7	32	INVEST	$493k	£0
Earlham (P2680)	8	9	5	5	27	INVEST	$222k	£0
Elke (P2482)	6	2	4	8	20	FARM-OUT	—	£2000k
Fynn Beauly (P2634)	4	3	2	9	18	DROP	$97k	£530k
Q29 (P2650)	3	8	4	3	18	HOLD	—	£25k
HALO Offshore (HALO)	0	1	2	2	5	LEGACY	—	£0

FARM-OUT CANDIDATES

#1 Elke (P2482)

High

100% WI, adjacent to Pilot (proven STOIIP), NSTA-granted extension. Attractive for mid-cap E&P or seismic-focused company.

Terms: Farm-out 50-75% for full carry on 40km² seismic commitment

Timeline: 6-12 months to complete

HIGH — seismic deadline Jul 2027

#2 Fynn Beauly (P2634)

Low-Medium

960 MMbbl STOIIP but 4,106 cP viscosity, no offshore thermal analogue, 8% dev probability. Hard sell but cheap entry for a major wanting STOIIP optionality.

Terms: Farm-out 25-50% for carry on Phase A studies

Timeline: 12+ months — slow market for unproven heavy oil

HIGH — cash calls starting Q2 2025

#3 Q29 (P2650)

Low

Early-stage Innovate licence. No urgency. Wait for more data before marketing.

Terms: Farm-out 25% for data room access

Timeline: No rush — 2027+

LOW

WHAT-IF SCENARIOS

Relinquish Fynn ✓ RECOMMENDED unless Serica offers carry

Surrender P2634 to NSTA

+£530k saved +9.6 months runway

Saving £530k cash vs £97k expected value. Clear positive NPV decision.

Farm-out Elke ✓ STRONGLY RECOMMENDED

Farm-out 75% of P2482 for seismic carry

+£2000k saved

Give up control for financial survival. Net positive.

Equity Raise £500k + Fynn relinquishment ✓ PREFERRED SCENARIO

Small placing + drop Fynn

£1030k impact ~19 months (to Jul 2026) runway

Buys enough time for Pilot FDP submission. Clean story.

Full restructure ✓ OPTIMAL if Elke farm-out achievable

Relinquish Fynn + Farm-out Elke + Raise £300k

£2830k impact

Maximum survival probability. Focused portfolio.

FUNDING SOURCES — RANKED BY FEASIBILITY

Source	Feasibility	Timeline	Dilution / Cost	Notes
Small equity placing (£300-500k)	High	1-3 months	10-20%	Track record — done before
Large equity round (£1-2m)	Medium	3-6 months	30-50%	Requires institutional interest
Elke farm-out	High	6-12 months	50-75% of Elke WI	Best risk-reward
Fynn farm-out	Low-Medium	12+ months	25-50% of Fynn WI	Hard to market — viscosity unknown
Director loans	Low	Immediate	None	Limited personal capacity
Royalty token primary sale	Medium	3-6 months	None (royalty not equity)	Albion R3/R4/R5 — $615k total at primary prices
Convertible loan note	Medium	2-4 months	Deferred — converts at next round	STASCO precedent ($1.1m CLN)
NSTA innovation grant	Low	6-12 months	None	Competitive. Possible for EM heating R&D.

⚡ RECOMMENDED ACTION PLAN

IMMEDIATE (0-3 months)

Equity raise £300-500k

Buys runway to execute farm-out strategy

SHORT-TERM (3-6 months)

Relinquish Fynn Beauly

960 MMbbl STOIIP optionality. Serica fees offset costs. Retain — RF heating upside transforms economics.

MEDIUM-TERM (6-12 months)

Farm-out Elke 50-75%

Remove £2m commitment. Retain upside adjacent to Pilot.

RESULT

Focused portfolio

Pilot (carried) + Earlham (carried) + Elke (25%) + Q29 (hold)