Energy Prospectus

First Quarter Highlights
•Lonestar Resources registered an 18% increase in net oil and gas production to 6,553 BOEPD in 1Q16, vs. 5,547 BOEPD in 1Q15. In the first quarter, 74% of the Company's production was crude oil and NGL's.
•The Company continues to focus its technical and capital resources on the Eagle Ford Shale, where it generated a 23% increase in net oil and gas production over 1Q15 results, to 5,954 BOEPD.
•EBITDAX was $13.6 million for 1Q16 vs. $21.7 million for 1Q15, as increased production volumes and incremental revenues from crude oil hedges helped offset a 31% decrease in West Texas Intermediate oil prices.
•Lonestar reported a net loss of $11.3 million for 1Q16 vs. a net loss of $0.7 million in 1Q15. Excluding a $8.4 million unrealized loss on commodity derivative and the associated non-cash expense, Lonestar would have reported a net loss of $2.9 million for 1Q16.
•At March 31, 2016, $86 million was outstanding on the facility on its $180 million Senior Secured facility, currently leaving $94 million undrawn and available.
•Lonestar is making progress towards its corporate objective of moving the Company's domicile and public equity listing to the United States. On March 10, 2016 Lonestar received overwhelming approval from its shareholders in support of this objective. The Company continues to respond to comments from the U.S. Securities & Exchange Commission ("SEC"), and believes that it is close to receiving clearance from the SEC. Upon clearance from the SEC, Lonestar will schedule a second Court hearing in Australia to gain final approval of the move to the United States. Lonestar filed an application for listing on the NASDAQ: NMS and reserved the ticker "LONE" for trading in the United States, which when effective, will coincide with a delisting from the Australian Stock Exchange.

I have updated the forecast model for Lonestar and posted it to the EPG website.

My valuation has increased $2.60/share to $13.20. This compares to First Call's price target of $6.75, which has not changed all year.

I am disappointed that it is taking so long for the company to get uplisted. I believe the uplisting will draw a lot of attention to this small-cap that has nice positions in the Eagle Ford and the Bakken. Lonwstar has plenty of liquidity, solid cash flow from operations and lots of running room.

~77% of Q2 to Q4 forecast oil production is hedged at $69.49/bbl, locking in cash flow from operations of $2.00 to $2.50 per share for 2016.

Patience, Dan , patience. This one will come good. After you first mentioned Lonestar it did go on a run and gained 75% . It has slid back since then. Like Sanchez, I think this is another good day trading target. if you like 75% gains, now is a nice time to get back in on the low end of the cycle.

foster, whats' the strategy for day trading such a low volume stock? i reckon you have to make limit trades and hope they take?

It trades as per usual at market price. I use my fidelity brokerage account to trade online without any problems.

I had to do some limit trades on Canadian listed small caps, but the difference to posted market price is usually very small compared to any gains, or losses, you may experience.

I have a VERY HIGH opinion of Frank Bracken and I think Lonestar will take off when it is uplisted. Dealing with the SEC to get a small-cap listed is a pain in the ass. Anyone that has had to deal with government agencies knows why this country is in so much debt.

For 18 years at Hess, the USE&P tax group reported to me. Just on the Windfall Profits Tax, I personally spent six years in Tax Court getting a case settled, which we won. The IRS had their own offices in my department and I caught the agents sleeping several times.

I believe Lonestar's share price will double for us.