cash position, page-72

Just a general technical note on drilling times and reporting

Every drilling company in conjunction with the operator prepares a detailed drilling plan with a nice summary. This drilling time table forms the basis of planning (getting personal and equipment to the site on time etc.). I am not certain but in this case there is probably one in Russian and one in English. So comments about the operator in this regard are ill informed - every operator has one since they are done routinely by the service company.

However it is always not benificial for the operator to publish this schedule and in this case I think I can see why JPR has not.

1. first well they have drilled in the basin.
2. turn-key drilling contract so a lot of the decision on drilling speed is not up to the operator.
3. I also suspect they have a fair bit of contingency plans which would greatly affect how long drilling/evaluation will take.
4. the buld of the costs are irrespective of time.

With this much uncertaining, it is not surprising that JPR has chosen to give a rough timing of 34 days and hopefully give us a timing update when they go along. I would expect on the next well we will get more timing detail at the start when they are more confident the charts released is more than a rough guide.

For most wells, once a well starts drilling after intermediate (and final) casing then the end of the well TD timing can be predicted. For a ~3000m well, most intermediate casing is set between 1200-1500m depending on the Geology.