tullow booming today, page-22

Merkin,

Thanks for the reply.

Can I clarify two points:-

a) Yes Ching has only been live since the end of February 2006 but it has been problematically since about the beginning of April. The latest data suggests that we will be lucky to maintain 30,000 barrels per day currently. The proposed redrill is only expected to add 10,000 barrels per day. If the current daily figure is only around 26,000 barrels then the net effect of the drill is only an extra 6,000 barrels for the forseeable future. For HDR that would mean further income of 1,200 barrels * 60 dollars = $72,000 per day gross. The net figure to themselves after operating costs would be $36,000 per day which I believe is not enough for them to survive on

b) True the figure A$94.1 million for development costs was for The Ching well. However when they come to develop Toif or Banda in which HDR have a similar 20% share, will they not have to find almost as much funding to that which accompanied the present producing well

That is how I read the present position is my logic awry?

regards