>Hi Lanman1! The way i understand it, they already have the monies alotted for the above.

Falcon didn't give PHUN cash for Australia, they gave them ~ 28 million FO shares, which PHUN intended on selling to come up with the money they needed for Australia. Since then, PHUN used 1/2 of those shares as collateral for the loan, leaving them with only 14 million that they can sell. Before they had a chance to sell any, the value of those shares dropped by about 2/3. PHUN will have a very hard time getting even 4 or 5 million for those shares now.

The current plan is to now drill only 4 wells in Australia during 2009, in order to meet the commitments on 2 of the permits. They probably aren't worried about loosing EP-76 and EP-99. This brings the estimated cost down to $20.5 million, meaning that PHUN still needs $10 million in 2009 for Australia.

>What i don't undersatnd is how they can do that many wells etc. for that amount of money? Is this tight basin much shallower. We did less wells in the MAKO and the price was astronomically higher, confused as to the difference here?

The Australian wells are targetting the higher formations only for the time being. Wells will be 2000-3000 meters. They are not HP/HT wells like in Hungary.