I have a couple theories around why the sudden suspension at 3150m:
1. The senior JV partner may have decided that, because the pre-well PTD had been hit, they've fulfilled their side of the contract and advised MAY that they're done funding 85% of the well and to continue would be on a 70/30 basis. This may grey the lines somewhat I'm assuming in what costs are attributable to the 85/15 arrangement and what to the 70/30. Therefore, it may have been simpler to make the line clear cut, suspend and possibly re-enter later under a 70/30 split.
2. I believe AP has demonstrated a bit of 'showman' characteristic in the past ie. always leave them wanting more - first with A1, now with Zap. If an investor has no 'hope' to hold onto there is little upside in the share price.
3. And this could tie in with option 1. Put yourself in Sonangol's shoes... if you plan to t/o your junior partner at some point in the future based on discoveries so far, would you want further discoveries built into the share price? Alternatively, do you take the course of action described above in 1?
MAY Price at posting:
5.5¢ Sentiment: Hold Disclosure: Held
