Ann: Corporate Presentation, page-25

Assume a cash surplus of $A50 per barrel on a price of say $90 per barrel ( we get a discount on Brent as I understand it).

On 1200 bpd we make $60000 per day which gives us around $14.5 million over 8 months. Do not vertical wells cost $6 million? What is the cost of a horizontal well if all goes smoothly? Surely more? All the above split evenly with ROC I assume. One dud well and the time frame to earn back the cost doubles.

It would at least make us cash positive after head office and other expenses, which 1200 bpd does not as cash levels have been declining.Of course other wells output may be declining with increased water cut so maybe the horizontal wells partly replace lower production from existing wells.