A7

[ArtM72]

Well the question is, is it worth a $400 milllion to a little over a billion to delay a year or 9 months. Is that worth the gamble? Will they have the revenues to sustain through that period? Lot of unknowns.

The gamble is the present value of the newly-found 2T minus the present value of a producing LPG plant evalulated for the one year delay minus the present value of the corresponding reduction in the balancing certification whenever that certification is called for by IOC.  I haven't done the math but  there would likely have to be some extraordinary combination of interest rates necessary to provide an economic justification for drilling A7.

A far more rational well location drilled to assure gas would be available to justify 10 MTPA would be Antelope South or the eastern flank of Raptor.  Either would be carried. Either could potentially provide 3 TCF.  All they need is a test well.  And likely both sites have been cleared.