Ann: Rosewood Plantation 21H No.1 Drilling Update, page-17

re: Ann: Rosewood Plantation 21H No.1 Drillin... Fluffy-

Cmonaussie is right, if this well IP's at 200 bopd you will be lucky to get your 4c back. This play works with a massive IP and fast decline.

Here's the production chart for the Martin Jnr well about 2.5 miles west of our well.

IP was 1500 bopd, first 12 months saw it chuck our 200 000 barrels and a further 100 000 barrels over the next 15 years with a sidetrack workover.

This is the production profile were looking for!

Fast pay back and profits with a nice long tail of steady cashflow.

This sort of production profile see's about $20 mil in revenue in the first year after spending somewhere in the vicinity of $6 mil to drill. No doubt drilling costs would decline with experience.

We have over 30 drill locations on a massive 640 acre spacing so this could easily double or more, it also gives us the cash to tackle our TMS formation which judging by EOG's success doubles our reserves and production capabilities again.

Easy to extrapolate 12 wells a year for 10 year program at $5 mil profit per well to us in the first year (we only own half of each well) with a long tail of production profits thereafter.

Its near all in place, nice quantity of land with the potential, cash to develop, just need the final piece of the puzzle, the engineering tech to make it work.

No wonder they are taking their sweet old time with this baby