Ca Ngu is progressing but it is stop start. While the root-cause of the delays were the cyclones/typhoons, and subsequent subsea currents we are getting push-back from the Songa guy.
Apparently he is not impressed with how we are treating his rig. Its a fine line. We've got to progress the drill as we are being charged, or the rig owner is got to drop the rate as it is not feasible to operate within the guidelines.
I dont know where we are in terms of depth, but for me it doesnt matter. Like Cua Lo I am equally as confident of either a resource find or confirmation of the surrounding leads, in time - which are 2-4x the size of Ca Ngu. For me Ca Ngu (B120) is a surety, as the seismic quite clearly shows why BHP missed with their well 12ks to the south. I havent been able to source the information/confirmation but it appears they walked away simply because of company priorities against the prevailing oil price at the time.
You wouldnt believe it, but supermajors do stupid things like this quite often. Step in NEN/juniors.
@GiddyYup,
Yes, I am taking the conservative road. You are right on the kick depth, you are also right on the upside. There is every possibility that 10-14+TCF can be achieved but from an analyst perspective it is blue sky.
NEN Price at posting:
34.0¢ Sentiment: Buy Disclosure: Held
