Quarterly, page-49

Trim, my understanding is COP are paying around $680,000 a day for the Athena and are letting the JV use it for around $360-380,000 per day from my memory of comments made at a IP, which at the time the firm wells contract were signed would be about market rates for a 7th generation Rig...I don't know what the market rates are for the support vessels but if we take $380,000 from the estimated $900,000 per day for drilling costs ( and there are many costs on top of drilling costs) then we have $520,000 divided between 3 vessels or an average of $173,000 each per day...

To suggest we were paying above standard rates at the time the contract was signed is based on nothing I can find , perhaps you can...as for CNE or COP not being concerned about costs stands on equally shaky ground IMO...everyone has their eyes on costs at the moment...

Now it's likely that the drilling costs have dropped further since the contract was signed and that will be addressed in any contracts related to the contingent wells or other wells going forward..

A poor drilling Manager can make cheap contract very expensive, we are fortunate in have COP running the drilling side of things , they are up there with the best of
the best, if by chance we are paying over market rates and I don't believe we are, then we may end up saving more ....as we found with FAN, one cock up almost put us under...

Which ever way you look at it, fully cored and tested wells are expensive and as CNE have stated this program is front loaded to get as much information as possible with the first 2 - 3 appraisal wells with the aim to prevent having to core and test further appraisal wells...if all goes to plan with SNE 3 there are no plans to core or test the SNE formations in BEL 1 just log them..I don't no whats planned for the Bellatrix formations and that will be decided when they enter them one would imagine...

If anyone is going to suggest we are paying over the top rates could they at least try and back it up...

Cheers Whisky