Ann: Second Quarter Update Presentation , page-16

hi daniel,

yes, you would expect some decrease in costs/boe as we produce more and more oil. This would certainly be true of 'conventional' oil plays. But shale plays are different in that you have to keep drilling significant numbers of wells to maintain production, because of high declines of existing wells. So your overall production costs are also always increasing. As the plot shows, the evidence to date suggests that the costs/boe decreased in the first year, then has plateaued out. But perhaps it will decrease again in the next year or so