Ann: Corporate Presentation-BRU.AX, page-34

If the free carry by Mitsubishi is a commitment like Apache's was and I cant see it being any different then Mitsubishi you would think have to pay it out.
BRU say its been reset ($27,5m)
Like Apache if Mitsubishi did not want to come good with the $9m in funds in the required time due to whatever corporate holdups you would think if its a commitment they would have to pay it out.
No company would throw away that kind of funding if it could just lapse.
That $9m would have been used for testing UFW and the Anderson play and also to tie it all back in to the main field as its in the production area where Mitsubishi's commitment is liable.

Who knows really why it wasn't spent doing that yet but there would be a ramifications if BRU were pushing for it but Mitsubishi for maybe corporate reasons were not.
As in the Apache case they just walked away from their commitments but paid both BRU and Mitsubishi out a substantial sum.

We all know that Mitsubishi were tightening their belts re spending and maybe this was one of the casualties they had to make in their financial year, so this might only be a balance sheet adjustment for them to achieve what corporate asked of their oil and gas arm in savings.

Another potential problem that might have arose between the J/V was the cost of the last well that was free carried.
It did go a very long time past the initial drill schedule which Mitsubishi had to pay for.

Anyway it looks like they are doing a full scale pilot project for FID next year.
6 wells from the one pad on the most prospective areas.
This is really what most of us want them to do as this is the catalyst to grow the company.
Sure the oil fields are important for revenue and when oil gets to where it should by next year then we can start pumping again.
They are also exploring funding for a multi well high impact program in the trend where there are multiple targets within 25 kilometres of the oil field.

IMO the only possible way to inject cash into the J/V is to introduce a new partner.
I possibly see a 33/33/33/ or 50/25/25 split with a new partner.
To get further in development for all projects the liability needs to be shared more as these projects are past the initial stages which require massive capital.
That I would guess would be what the J/V is working on to go forward hence the lack of activity.

The potential is definitely there but these things take time so in the bottom drawer my scrip goes.
Not much will be happening till we find another partner with some grunt IMO.