what can we expect tomorrow?, page-5

Hardmano/Otaw and others
Yes its soooo boring waiting for things to get going again. What a no-brainer HDR is at the current price!!

In relation to the reserves, I expect there will be a bigger percentage increase in the 1P number than in the other two. Basically I see the change as being associated with recoverability mainly. I'd be interested in hearing from an expert on this.

Hardmano, I do not believe the flow rate and therefore the cash flow will change even though the confidence in its sustainability will be improved by the quality of production wells. I think that because, from memory, the fiscal regime/royalty arrangement is less attractive above 75,000 BOPD. I do not recall the details but I do remember reading that there is a step up royalty and that to make it worthwhile to exceed that threshold there needs to be substantial excess production. I think the next threshold for royalties is at 100,000 BOPD.

Therefore, I do not think there will be a push to exceed the 75,000 threshold. However, the fact that it can flow at a higher rate should mean it flows for longer at the peak rate....and if one well has to be shut down for maintenance or something, then the production level is less at risk. All good outcomes...

Again, I would be interested to hear other people's comments.

regards
DF