RE: RE: RE: Boxing Day Sale on EOG NorthSun, you need to get your numbers straight. First, the Rig cost for 280 days for HRT is approximately $149 million alone. Now add other costs such as pipe, etc and it's well over $200 million. Example, Chariot contract to drill Tapir South for the Rig alone was $34 million and when you added additional costs, it came more to like $60 million.
EOG is well ahead of schedule in terms of work to be done on their blocks to get the license in good standing. The only big capital costs would be if they are still around independently to drill a well in 2 to 3 years time. They don't even need to do 3D seismic before this year is out and that will only cost them approximately $12 million considering that Azimuth is paying 40% (they already have $5 million in cash). After 3D work complete and any other company hit on their well, EOG will be a prime take out target and will not get to a drilling stage where they would need significant capital.