Backreef drill costs as per the 2009 half year report:
"Revised Estimated cost of a conventional well is $2,500,000 (including contingency) by Operator Backreef Oil Limited (BOL). Alternatively slim-hole drilling costs (using a modified mineral drilling rig) are likely to be substantially cheaper and the Company is investigating this alternative. Such a rig and drilling technique has recently been approved during 2009 by WA Department of Mines and Petroleum (DMP) in the Canning and has been previously used by WMC Petroleum during the 1980s as a low cost alternative."
It will cost between $1.9M and $2.5M to drill Backreef as slim hole drilling is about 25% cheaper.
The thing to remember is that we have so much leverage that a cap raising or JV leaves us with a very healthy return on a medium success case at BackReef. I believe we'll see developments shortly after the prospectivity report is complete. It's very heartening to see so many posters/investors lurking in the wings as we gear up to explore.
OBL Price at posting:
2.9¢ Sentiment: LT Buy Disclosure: Held
