Ann: Apache farms-in to coastal and eastern deser, page-22

re: Ann: Apache farms-in to coastal and easte... Great to see some excellent discussion going on.

Bhutos - I agree the coastal farm-out was small, but as you mention, it is probably the least prospective part of BRU's tenements, and they were still able to get a farm in.

Mod - as always, can only agree, the production licence is very important, I def think they will get production going this year, but only by utilizing the EPT. Luckily BRU has removed any need for Ungani cash flow of the next 12-18 months, so any revenue we get for me is simply a bonus.

I will debate with you Mod on how much the Acacia farm-out will be worth to BRU. I think it will be around a minimum of $40 million, with the potential to exceed $70-80 million, if development wells are also undertaken (I do agree that without know what type of wells are part of the agreement, costing is a challenge at this stage, but I have a feeling they will be fairly keep, i.e go for the conventional plays whilst coring the shale?). I hesitate to use NSE as an example, but even if the costs of the BRU/APACHE wells come in less than NSE, there is still all the 2D,3D, gravity seismic and other other associated costs that will be refunded to BRU. I don't have hard figures though, so a lot of room to move.

Anatol has succinctly explained that APACHE has basically got a 'put option' for the Canning Basins Goldwyer shale' (with the bonus of the conventional targets), which I can again only say, is going to take a lot longer to monetize than BRUs closer plays... hence, APACHE is able to look much longer term financially than BRU (10-20 years at least).

Some may still be wondering why APACHE. Firstly, may be nothing, but it would seem that APACHE and Chevron have some big projects J/V, so the link would seem to be there for later on.

Grabbed this from their recent company presentation. Just to be clear, as far as I know, this is APACHE's first onshore partnership in Australia. What do they bring to the table other than cash you ask. Simply, they are currently very focused on U.S liquid rich shale plays...........

It bodes well to me that they are so interested in the south when BRU has arguably even more potential in the north.