follow up volume, page-52

Here's an interesting thing.

In the 25 May 2012 AGM preso (pg11 PDF or pg20 doc), the estimated net (NDO share) dry hole cost to drill Apribada was quoted as US$9M.
2012 AGM Preso

In August 2012, the SC63 JV got a 12 mth extension on the phase 2b commitment well BECAUSE, the mob/demob costs for a one off drill were going to add US$6M (US$3M net NDO) to the estimated US$18M dry hole cost.
SC63 Phase 2b Extension

On 7 May 2013, we are told the SC63 JV is going to drill Baragatan ASAP, with an estimated gross well cost of US$22 - $25M (NDO share US$11 - 12.5M).
NDO to drill Baragatan

That's about US$6M more than the Apribada estimate. So my conclusion is, we are going to pay the extra to get a one off drill, or at least they are budgeting for it.

There were many last year who were all for saving the money. I guess the only good thing that's come of it is the change of target from Apribada to Baragatan. Let's hope it pays off!

However, the piggy bank might run dry if Baragatan flows. Ideally they should test it, and that is likely to add another US$5 - 6M to the expenditure.

If they'd tested Tindalo after the drill back in 2008, we never would have rushed into the costly development commitment that nearly sunk us.