Why didn't FAR raise enough capital in the previous CR?, page-2

Hi Anthony at the time of the last CR the JV didn't have an appraisal plan and also that was before Rig rates started to take a dive.

Just been trying to get a rough handle on the well costs for this current round of appraisal drilling given the JV is not giving much away and as you know I am not convinced this is enough for a 6 well program...

If we take the cost of SNE 1 which I believe was $ US80 mil and was on budget then add 4 weeks of testing which wasn't done at SNE 1 then that well would have cost $US 100-110 Mil fully tested, I'm going with $US110 Mil.

If we take a 40% cut in costs we have $US 66 Mil per well, so three appraisal wells fully tested would be $US 198 Mil then add $ US 15 mil for 3D and $ US 10 Mil for mobilisation we have $ US 223 Mil for these 3 wells.

FAR's share of that is 16.7% or $ US 37.2 Mil / $ AU 51.4 Mil making $Au 17.2 Mil per well average. Any contingent wells on the shelf at least would have very little mobilisation costs and no 3D costs so would be cheaper.

The upper shelf appraisal plan for 3 wells has allowed $ AU 69 Mil so enough cash for up to 4 wells IMO, these figure are obviously approximate and would vary with exchange rates, downhole problems and time spent testing.

Anyway just putting my thoughts out there....the first well is the most important one and everything revolves around it anyway...

Cheers Whisky