Bignote .....my apologies.I did try to post a reply to your...

Bignote .....my apologies.
I did try to post a reply to your question earlier. had it all typed out and got down to the last thing to do but my computer malfunctioned or played up at that point and would not allow me to indicate my position.

After many attempts I just had to abandon it.

Anyway. I'm not sure of the exact cost of a weel here at Bullseye. I have in the back of my mind US$4m.

I think I did see a estimate figure for J #1 when it started but I cannot quite find the info again now.

But I think it could be of that level. Especially as these wells have to go down to just over 12,000' to get to the Miogyp.

So far as cashflows are concerned don't forget that the company has to keep things running.

For QPN for example, it currently receives for its 5% return of Bullseye about a nett AU$65,000 per month. Now that has to help keep the company operating. So a fair bit of that cashflow will go to meet operating costs.
To have to pay for the drilling of a well as well .....well it just would not have enough to meet the demands from what is left in my oppinion.

Bit of a Catch 22 situation. Needs to boost cashflow by getting more production from Bullseye but does not have enough spare cash to fund the development easily that would then give it the increased cashflow. Frustrating ain't it.

However, QPN has managed toi free up some extra money via its Californian acreage so should be in a position to contribute to any development well at Bullseye now.

As for the others involved ? Hard to say. Modena might have a struggle. GGP ought to be okay though not exactly flush as it has to provide the biggest share.

I think they will want to get a clear guage on the size of the Miogyp reservoir first.
Then they will want to have decided on the best possible choice for a development well (i.e. pretty certain to be a good producer.... well as certain as you can be from the seismic info they have available)

Will be interesting to see how soon they get the results and how soon they move to drill again ..... and where !