Ann: Change in substantial holding , page-13

Hi Sdaji

At the time of posting, AUT (AEF) is firmly back above C$3. Volume average but some lumpy transactions: one 250k shares and another 121,300 shares.

Re "bottom line" etc, the biggest items will be sales revenue (obviously) and amortisation - and that is where different views on EURs will come into play, not to mention basis of cost allocation.

For instance, if Hilcorp drills twins (one in the EFS and one above in the Chalk) then the cost of the pad, the vertical, the production tanks and equipment and the infrastructure (road/pipeline etc) will be spread for recovery over both wells. Then there is the possibility that they will use the same pad for twins either side....

As to using the same vertical for the EFS and the chalk: they've done that. Kowalik was originally drilled in the chalk and finished with slotted liner by TCEI. Hilcorp couldn't get the liner out and re-drilled, but lower, in the EFS. That is the current producing well.

Then there's the question of whether the upper zone of the EFS is being drained: The first analysis provided by the jvp's years ago was of 3 horizons. That is now two, but with the lower horizon, the EFS, having an upper and lower zone. I don't know the answer to that.

So, bottom line is unlikely to be meaningful until they've completed the drilling to secure leases by production and can turn their attention to maximising profitability.

We are then looking at the A$:USD FX rate from 2013?

Until then, they will have to amortise costs in what may prove to be a conservative manner.