Consider this, the price of drilling rigs has tripled in the past two years. That is on a day basis, as an average. Now compound that by an area of HOT activity, such as the Caspian basin. Do you think the price will be cheaper, about the same or more expensive? Supply and demand are ruling the roost.
If the rig rate is $30,000 p/d, for example, and you are talking about 2 months worth of drilling, that is $1.8 mil, JUST for the rig, FOR one well. That doesn't include, mud cost, tubulars, mud loggers, transportaion, well logging, drill bites, specialized tools, commucications, etc. etc. etc.
Now having point this out on JUST ONE aspect of cost, FOR ONE well, do you now think that AIPN has the financial witheral to go it alone? We are talking around 6-10 mil, maybe, to drill a perfect well. By that, I mean no problems. IF they encounter difficulties, then the cost goes UP.
Naturally, the plan all along, IMO, was to secure a partner. IMO, it is imperative. |
