backreef , page-6

I am interested to know how much % the company will give up its rights on backreef as a form out. The test of backreef-1 costs about 1million and new well depth 1000meters will cost about 4-5m. If form-out goes as planned, it will bring 5-6millions investment into backreef and one well by year2011.

The conditional form-out deal with BRU is about 4.5million (5.5m if you include production test cost) for 30% rights. I reckon deal with another business entity should be similar and/or better than BRU. If the company retain 70%+ rights on backreef, I would consider it is a great deal under current market situation.