All things going bad, including not receiving Tinaldo revenue...

All things going bad, including not receiving Tinaldo revenue for Sept Qu, Im guessing a worst case scenario of 7 Mill AUD in the bank end of Sept Qu.
I allowed for Typhoon stoppages, double Galoc payment, and very large Workover expenses.

If all things not good, after the workover, it would probably mean another Farmout. Personally dont mind how much we give away of the smaller leases, as long as we keep a fair share of the pie of the larger leases. Whatever it takes to get it done. As the board has said " the best strategy for the shareholders"

Keep in mind , this is why the farmout on SC54A was done in the first place, to reduce risk of a cashflow problem, should not all go to plan.

Should Tinaldo not be commercially viable after workover, I guess its off to Yakal, since we have the rig contracted.

Other points of interest :

Still have a start for 1st Qu 2010 for 5 well drill program, that may change next Qu.

Cashflow risk of Galoc, with a decline of 15% since last Qu on daily production. Ive estimated 5000 b/day by June next yr (extrapolated of OEL's chart in their quarterly.)

Nido and Martinloc contributed est 783K AUD minus expenses for the Qu.

SC54A: Reprocessed Seismic Mar Qu suppose to be ready "Mid yr", now it will be 3rd Qu.

West Linapacan : Development studies ongoing

SC54B : Gindara drill ready, database buildup of sth area underway. 25% relinquishment on completion. (see KIK Quarterly of map)

SC58: 161 Core samples still in Norway, results in Aug. 2D seismic re-processing ongoing.

SC63 : Tight lipped about the 3D results, interpretation is ongoing. But Nido slipped out "Toe thrust plays". So did a bit of reading, and from a geo website about Toe thrusts, "deffinately upside potential for hydrocarbons."

Sure and steady, with one step back and two steps forward........though some might argue otherwise :)