With Brasher producing, Heintschel awaiting fraccing, and Moeller being completed for production, the next significant announcement from BUR may well be related to the use of the option to drill a 3rd Wilcox well.
Although it may not be well received by the market (which prefers instant gratification) I wouldn't mind if they gave the option away. Perhaps the option for the 3rd drill existed in case they had a duster in the first 2? But by completing both of the first 2 for production they have spent at the upper end of their estimates, especially as M1 took longer. Add to that the fraccing costs for H1, and it's been an expensive start to the campaign.
Expensive is good, as who wants the drill cost savings that a P&A offer, but we dont have a huge amount in the bank.
So I wouldn't mind seeing them let the rig go, and concentrating on getting H1 and M1 hooked up for sales, analysing the data collected from the drilling and any production, and getting some income coming in. Then going again.
Thoughts?
BUR Price at posting:
9.4¢ Sentiment: Hold Disclosure: Held
