its actually a win!, page-8

Interesting:

In ADI target Statement (issued in 2010) they estimated costs of dilling a well in the sugarloaf field as:

RISC has reviewed the drilling and (multi) fraccing costs of recent wells and estimated development costs as follows.

Development cost per well............. US$ million
Drilling................................... 3.0
Fraccing................................... 3.0
Completion, Surface Facilities, Compression 1.0
Workover after 3 yrs........................ 0.5
Total...................................... 7.5
(folio 97 of 107 page report)

In the Sugarloaf area, the Eagle Ford Shale and overlying Austin Chalk reservoir is at 12,000 feet with a gross thickness of 260 ft and a pressure gradient of 0.6 to 0.8 psi/ft.

Figure 2.5 of that report (Folio 90) has a table of the costs of wells in Marcellus $4.5M, Haynesville US$7.2M, Fayetteville US$3.0M, Barnett US$2.8M, Colony Granit Wash $6.25M, TZ PH Granit Wash $4.5M and average at US$.71M.

A$16.0M for one well in CB seems an awful lot.

Any comments anyone?

Regards

SP