Agreed Corporate,When every announcement contains a slide on...

Agreed Corporate,

When every announcement contains a slide on your ability to get the most out of a deal, a certain amount of hardball would have to be played.

Here is another take on things. The original commitment was for 1 well in 2011, the 3D in 2012, 2 wells in 2013 and a development well in 2014. The 1 well in 2011 has already been pushed out once so ability to extend is highly unlikely. The 3D cube on the Horst isn't fully processed so the ability to lure a partner before the end of year deadline is very difficult. The cheapest option would be Kuala Langsa - shallow and guaranteed high flow rate with high CO2 not suited for LNG BUT if you can find and flow gas out of Gurame, you have a different proposition.

Assuming you have gas and a sustained flow rate, you have 3D seismic, 5 earlier wells providing reservoir characteristics and you have a short term development market (Arun LNG) with 40% take after tax.

Assuming a resonable flow rate, on this basis, you have 2P reserves under the SPE-PRMS system. Once you have reserves you can access the debt market rather than a CR. If I was trying to sell an LNG plant in a gas short market, I'd be tripping over myself to sign an MOU on a near shore gas reserve.

Just another take on things - no ramp intended. Would have preferred a partner and free carry but COS and local market in our favour.