Ann: Tamarama-1 Update and Video, page-28

Found the link below an interesting read, especially this section

1) Drilling Costs : drilling costs have declined and most of this is structural (estimated at 75%) not cyclical (ie labour costs etc , 25%). Some dramatic examples:

• $6m /28 days to drill a well in the Cooper basin in 2014; today $2.8m / 12 days.
• Aroma well cost $5m at FID; today <$1m.

https://www.livewiremarkets.com/wires/santos-the-trend-has-turned

With the commercialization of a new field based primarily on a simple capital costs versus potential revenue the fact that the cost of drill in the Cooper basin has halved has a material effect on the likelihood of RLE booking reserves. On the other side of the equation we have a sales gas price which has essentially double since 2014, back then they were saying that 2-3mmcfd would be commercial, anyone with a calculator should be able to see how dramatically that has changed. Keep in mind also that a govt R&d rebate of around 40% has historically been available for exploration and development.

On another note, the recent investor presentation stated under future plans that "Additional assets being reviewed".  Looking into potential assets in the area PL116 stands out. It just a few km away and is home to the Cocos field owned by AGL (EWC subsidiary). There is a 12mmcfd production and compression station which has been on care and maintenance for several years since the Cocos wells were shut in. The plant used to feed treated gas into the Mt Isa sales gas pipeline which was transported the gas to the New Century Zinc mine. Tolga Kumova is currently preparing the mine for a restart under the relisted NCZ. Could this be the asset and commercial agreement?