braveheart-cornea funding, page-4

Information from Ausralian Oil & Gas quarterly report Funding for Braveheart-1 Well and Cornea-3 The Braveheart-1 well in WA-333-P and the Cornea-3 appraisal well in WA-342-P are anticipated to be drilled in Q4, 2009 or early Q1, 2010.


The Company expects to have available to it the proceeds from the sale of the AC/P33 interest to PTT. (See Note 8 Subsequent Events in Notes to Financial Statements (Unaudited) and also explanation following under the heading Oliver Joint Venture). This amounts to $4,125,000. The Company’s estimated requirement for the Braveheart-1 well is $2.25 million, while the estimate for the cost of our 17% interest in the Cornea-3 well is $4.1 million. (See following).


The Company has negotiated to sell a 7% interest in the Cornea permit, WA-342-P, for approximately $1.25 million, subject to completion of documentation. With the conclusion of this sale, the Company’s funding requirement for the 14.5% interest in the Braveheart-1 well would be $2.25 million and for the remaining 10% of the Cornea-3 Appraisal well would be $2.4 million; a total of $4.65 million. The combined proceeds from the sale of AC/P33 interest and the sale of a 7% interest in WA-342-P would amount to $5.375 million, thus providing a buffer in the event of cost overrun.