ausi drilling capabilities, page-12

I don't think it is wise for us at the moment to cough up so much money for a state of the art rig where most of our drilling at the moment are high risk exploration drills. A new rig that BRU was using to drill their Ungani 3 well recently was rumoured to cost them $20 mil for that well alone. That's a simple vertical well going down less than 3km deep! It would make any duster a very expensive gamble in deed, especially for a cashless minnow like us. Just for comparison a well drilled in the EFS 3km deep plus 3km horizontal complete with 30 stage frac only cost the yanks $8-$10 mil. RC should know this full well as he is Chairman at AKK, who are in JV with Halcon and currently drilling in their EFS acreage. Unthinkable what that would cost here.

Most of our drills are 2km or less, so we don't really need an expensive rig at this stage, just ones that can stay upright and no monkey board problems! What RC is learning first hand at AKK will directly benfit CTP in future as we embark on unlocking our regionally tight resources.