new ann - all good, page-4

This looks good. After reading the announcement there are 3 reasons for the Phase 1 NPV to go up.

1. 10 new injector wells may no longer be needed, say at $1M each that is a reduction in capex of $10M.
2. Location of phase 1 area in the northern part of the field saves on production and logistics infrastructure, say $2M savings in capex (just a guess).
3. The northern part of the field contains more residual oil, a guess would be about one third of the total field so this would come to about 5MBO compared to about 3.7MBO for the central part of the field. An increase of 1.3MBO at say $15/barrel increases NPV by about $20M.

The previous NPV was $US48M for 100% debt funded. Now I expect it to be closer to $US80M (48+10+2+20) or $AU88M. That equates to 87cps.

That should make funding available on more attractive terms.