what is the true value of 3p oil in place, page-4

If 4000bopd is required to develop WSH then it is reasonable to expect that the current intersection of WSH3 will provide that. As to effective field drainage that may require a horizontal well probably aimed towards WSH1.

At this field size the main development option is to tap the Barracouta pieline. My understanding is that this will cost around $40 mliion and be ready in 2009-10. Allow another $20 million for another well/horizontal drilling. This is a cost of $12/barrel. Based on the AED experience this could be bank financed with around 1 million barrels hedged.

TDO will be hit on the carry/treatment charge but based on FPSO costs this should less than $20/barrel.

At initial 1 million bopd after RRT etc. leaves perhaps $50 million pa for development drilling as there are other targets and the extent/size of WSH/Wardie still has upside.