SK,I chose $50/bbl GPM because this is a figure that I have...

SK,

I chose $50/bbl GPM because this is a figure that I have heard mentioned before. Surprise's potential oil resource is actually a rather cheap prospect to get out of the ground, and trucking the oil won't be difficult because this won't be a HUGE production well requiring mass-haulage and the fees that go along with it. Trucking is still the cheapest way to take the oil to Darwin, and a basic facility on-site or at the Alice Springs yard will more than account for what comes out.

I AM assuming a $100/bbl oil price, and I suspect that this will be the average oil price for a while, and will steadily climb. The overall average will probably be HIGHER than this, but I am happy with it for now. It makes little difference if the oil price dips below $100 temporarily, because over a possible 25-30 year well-life it will average much higher.

I feel $50 is more than reasonable, and it could well be more than that averaged over time.

Hope that helps

RB