Ann: Quarterly Activities & Cashflow Report, page-10

Hawkeye was always a cheaper well then Cinco. At the height of the boom, Otto management quoted me 35 to 40M to be drilled on a trouble free basis. Rig rates are already down 30-40%. On this basis, a 40% equity holding would be covered together with a decent blow out contingency in the BHP funding.

Previous announcements have always stated that the well will be plugged and abandoned regardless of the result so this is designed as a cheap well - don't expect expensive sidetracks, coring or well testing in the event of success. In the current market, they'll raise funds and retest at a later date - after the bounce in the share price.