After royalty but before depreciation each Morgan type well...

After royalty but before depreciation each Morgan type well could produce annualised income of $1.5m attributable subject to flow decline. They could have 10 wells flowing by Christmas - they have 5 flowing right now and income will be flowing to ADI in Q4, that's what the presentations have said. That should start to mop up the tax losses quite quickly even with the new capex.

"134 Adelphi has US tax losses amounting to US$10.2 million which have been incurred since Adelphi was formed. We have valued the future benefit of these tax losses on the basis that they will be available to offset the forecast tax payments included in the DCF valuation of Sugarloaf and after allowing for the expected timing of their utilisation."