On 15 June 2018, the Company received a price query from ASX due to the recent increase in the price and volume of trading in the Company's securities, the share price having risen from 11 cents on 12 June 2018 to a high of 15 cents on 15 June 2018. A copy of ASX's letter is attached. In answer to the specific questions asked by ASX, the Company states as follows:
1. The Company is not aware of any information concerning it that has not been announced which, if known by some in the market, could be an explanation for the recent trading in the securities of the Company. The Company released an Investor Presentation to the ASX on 29 May 2018 which provided an update to the market on the Company's assets in the USA and Yemen, and in particular, the imminent proposed development/appraisal/exploration drilling on the Hummer Gas/Oil Field in the Gulf of Mexico, USA , which is expected to commence in July/August 2018. Using the 29 May Presentation, management has recently commenced a marketing campaign, engaging with brokers and analysts, to appraise them of, and discuss, the upcoming development/appraisal/exploration drilling at Hummer and the potential upside to the Company of the six target reservoirs planned to be intersected by the Main Pass 270 B-2 well.
2. N/A
3. Another possible explanation for the increase in the Company's share price is the widespread and substantial international media reports covering the Wednesday the 13th of June launch of military operations by the Saudi-led Gulf Coast Coalition, to liberate the rebel held Red Sea port of Hodeidah in Yemen, and the country's major oil export terminal at Ras Isa. Liberation of the port of Hodeidah and the oil export terminal of Ras Isa would allow oil production in the Shabwah/Marib Basin, which represents the bulk of Yemen’s oil production, to recommence by using the Marib Export Pipeline. Rebel occupation of Hodeidah and Ras Isa has caused the Shabwah/Marib oil production to be shut-in since March 2015. Recommencement of oil exports from Ras Isa would be a very positive development for the Company because it would allow oil production from the Company's An Nagyah Oilfield in Damis (Block S-1) which is connected to the Marib Export Pipeline and the Ras Isa Terminal.