Cairn Pre-Close Update 19 January, page-117

Hi DB and @cobra327

Thanks for that - it turns out to be from the CMD presentation in May. It is easy to misread, you actually have to get a rule out and measure the height of the block against the scale on the left to get the answer. In this case I make Cairns estimated forward expenditure for the three contingent wells ~US$90m which is in keeping with the US$95m estimated in the same presentation (transcript) for the initial three well program + seismic.

However, by the time of the Half Year Results presentation in August, the initial US$95m for the committed program had jumped to US$130m - a result (they said) of the very extensive testing program envisaged.

Now that US$90m could increase like the CMD estimate did for more extensive testing or decrease if costs can be revised down. If it remains unchanged, that would equate to an extra budget for FAR of (90 x 15/40)/0.69 = A$49m over the budget for the initial 3 well program at today's exchange rates.

pj