Ann: December 2014 Quarterly Report, page-7

Food for thought.

Correct me if I'm wrong but if we bought Fayetteville in
June 2011  - The price would be approx $4.5b.
June 2012 - The price would be approx $2.0b
(Write off of $2.8b June 2012 - check out BHP Annual report 2014).
Note that the oil price (for crude Oil) at that time of BHP's write off was somewhere between
$90 and $120 a barrel.
POO today is $49.

So - Had we bought this asset at anytime between June 2011 (assuming it was avaiable for sale the whole time) to say up to 3 months ago, we would be bust, caput, see ya later.

But - by holding off (and assuming we do indeed buy it soon - or something like it), we are essentially saving the wages off all the executives annual salaries combined by a a factor of say 5 for every day this trend remains. I say, gee I'm glad we have our team.

Seems to me, if our team were at BHP, they would of sold Fayetteville for $4.5b a few years ago and now bought it back for $1b (not the other way around).

IMAGINE BUYING SOMETHING 3 MONTHS AGO AND HAVING TO WRITE 1/2 OF IT OFF NOW.
Good times to have $500m LOC for 5 years with a 2% Interest Rate and private investors wanting in.

I mean some assets we can buy now would be profitable to us despite not being profitable to the companies selling simply because of our 2% funding rate. Eg: If your funding cost was say 6% oppossed to our 2% on a $1b asset. You have to find $40m more a year just for the interest.

Good times man.