Cmon & all, I can understand getting drill ready and coy's providing updates on how they are responding to the challenges but think buying production from some of the troubled ones gives a better return, there is no shortage of oil atm and drilling is risky so no guarantee it would help. Drilling does however create some interest so makes some sense if needing to raise money.
Having said that there are still permits being lodged and some of the better placed coy's look to be moving to multi well pads to reduce costs and improve recoverables which looks interesting. If that's the way things are heading I can understand why SSN have moved to FB which can provide extra production at a much lower cost and possibly less risk. The NS partners look busy and we could never have kept up imo.
Also from what I have read the capital markets are still a challenge which can also be supported by the quiet on almost all the Oil HC threads. If we use a $35-$40k per bo/d then using last qtrs prodn most of the aussie oilers look overvalued to me.
I thought the cost reductions were good and we've got some reports coming up to ponder over. Driving is all done now so should get a bit more time.
Cheers & GLTA
SSN Price at posting:
0.5¢ Sentiment: Hold Disclosure: Held
