Hold a sec here T2W

First of all it is not my stance, I am just explaining what the facts are. Do not shoot the messenger.

The cost is what it is.

$5M a month now and that includes infrastructure work, G&A equipment down hole, pipes  etc. Rigs will cost $4M + a month with pipes, equipment etc.

What is more important is that you cannot do anything without the partners approval.  Remember that it is not Mart's field it is Midwestern and Suntrust field and it would come right out of their pocket without increase in production during that time. It would not come out of Mart's pocket.  Expenses are paid in oil as they occur.

Regarding the tax holiday it is 3 years back and 2 years forward.  It will end at the end of 2013 or about 3 to 4 months after the pipeline is ready.

During that time using one rig we can drill 2 to 3 wells at 4K BOPD a piece and re-enter 2 wells as horizontal wells for 9K a piece. All of that with the rig we have.   At the present we could pump 18K to 19K.  That would bring you to a total of 45K to 49K BOPD when the pipeline becomes operational late Q3 2013.

The capacity allocated by Shell is 25K,  add 16K from AGIP that's 41K BOPD so unless Shell allocates more capacity you are still pipeline constrained and you would not have any tax holiday benefits by having even more production you cannot ship.

One small hint.  The partners problem would go away if we had a merger.  You would also cut down the technical teams from 3 teams to 1 team.

We are going to be just fine.

GLTY