Ann: Bullseye Prospect Sale of 8% Working Interes, page-18

re: Ann: Bullseye Prospect Sale of 8% Working... To respond to you first Frosty.

It is not all that odd ! Remember that GGP is the operator and they have had, until this recent announcement, a 43% (or thereabouts)involvement in the well. So they have had to carry 43% of the costs.

Now QPN prepaid US$ 600,000 as its 5% share (or is it a 6.5% working interest) of all the costs of this well at the end of the December quarter.

If you calculate out the possible cost of drilling the well and bringing it into production if successful then it isn't cheap. It is big deal stuff.

It does have to go down eventually to around 14,000 feet. That is a whole lot of pipe lengths that have to be pulled out anytime there is something that has to be tested or there is a problem.
Takes time and time is money when you have got the rig idle.

So GGP needs money to keep this well going as the recent hiccup did cost time and money. So there has been a bit of a time overrun and therefore a cost overrun.

As GGP has to bear the brunt of that cost then they have had to trim down their percentage and get some money in from it to continue the well.

GGP has other things on the go as well as J#2 and they have to fund those as well don't forget.