Cold water comments from ScotiaEstimating $5 m cash balance at end of Q2/11 and cost of Chia Surkh-10 well at $15-$20 million gross, with LFD responsible for 75%, so $11- $15 million net.
Concludes that CS-10 could be delayed pending more $$$ needed, or a a partial farmout.
Some hopeful comments, then some hard reality...for example...
"....with drilling targeting the shallower Jeribe formation (2400 m), which previously tested at about 4800 bbl/d (CS-7) in 1936, and was successfully tested in the recent Western Zagros Sarqala-1 re-entry (about 9000 bbl/d).
... "Longford is also required to pay 5 installments of US$5M to the KRG for capacity building payments that are outstanding and past due. The first exploration sub-phase (2 wells) ends June 2012."
To state the obvious, looks like we still have some tough sledding ahead.