Ann: Company Interview - Strong Operations & Expl, page-17

re: Ann: Company Interview - Strong Operation... EWO.
We will have to have this discussion in a years time.
At the moment we are about as far apart as its possible to get.
I dont have any doubt about the substantial intrinsic value of the S assets in the Reserves,period.I am even more comfortable with them when I read CVNs comments about their water injection intentions for this regime.
The qualification I have re these assets is that the first water injection programme will take time (months) to implement and further fields will have programmes that will take appropriate time.It takes months to increase the reservoir pressure in any given S field so this programme will likely take years to implement over the entire S regime.Then again most of the S wells are in WB and WBext so a reasonably high % of all the S wells may come under the umbrella of the first water injection programme.
The intrinsic value of the V assets in the Reserves has,at this time ,some significant question marks about it.Currently the tone of CVNs announcements suggests that Towngas believes it may have a workable V drilling target selection method and may have found a drilling format that will likely solve some of the operational V problems in at least one type of V target(2Cs type). You can only take aboard the tone of what CVN has said about WBext2C and the intention to use the favourable results to date in 2C as a template for several more wells with 2Cs characteristics.
A year may be enough to get a bead on the water injection programme and 6 months enough time to get a bead on the V regime a la the upcoming wells that are similar to 2C.
Overall you have to choose whether the level of confidence coming forward from CVN is soundly based,or not.Ive plumped for the former while you have elected the nay option.
Cheers.