From AOC release recently...it appears there have been some...

From AOC release recently...it appears there have been some rather significant cost over-runs that EBR have been a little less than forthcoming about.!! I was wondering why AOC would be pulling the pin and offloading their interest at such a crucial stage in thew drilling program.. A lot of the over runs were inevitable though as the original costings were based on the el-cheapo rig that funnily enough failed to work..


PEL 182
Onshore Petroleum Exploration – Cooper Basin South Australia
There was no exploration activity in this permit.
The participants are discussing the alternatives regarding the work commitments in the permit.
As a result of the cost of the 3 well exploration program to date being in excess of $11 million against the operator’s indicative cost of $8 million for the first 5 wells at the time of the farm in, we have aggressively farmed out our interest in this permit. We now retain a 12.5% interest in the Emily – 1 well and 5% interest in the Vanessa – 1 well. We have no other ongoing interest in the permit other than our obligations under the original farm in agreement.