Ann: Sugarloaf Operational Update , page-15

Sorry, but it was not 'that way round' as I recall it.

TCEI & AUT sought to farm out first. AUT had a 50% interest in Longhorn and 80% in Ipanema. If you translate that into drilling costs, it's easy to see why AUT had to farm out.

And they could not just leave the acreage to lay fallow.

That's basically why I had no interest in AUT before the farmout happened. Then I wanted to see some evidence of Hilcorp's enthusiasm - let's face it, they reserved a long time to actually complete the obligations.

It could have been that Hilcorp wanted the Sugarloaf as well to make it a chunkier package. Adding Sugarloaf almost provided them with the equivalent of 100% of Longhorn+Ipanema.

AUT's prospects are very different now, imo.