Ann: Sacgasco SC 6B Cadlao Farmout LOI, page-54

Why would PNOC EC invest in SGC on a Service Contract that expires in Feb 2024? They can simply wait it out and get it for free or partner with someone else with funds. Real full funding for the whole POD.

Regardless, to extract the full 6 or so million barrels from Cadlao will require at least 3 wells. On the well cost alone that equates to around 60 million dollars. Not including other CAPEX and OPEX. Effectively...a USD 100 million project. Do you see that happening? Even Blue Sky appears to have bailed out (just like Joanne and Marshall).

At current oil prices the project has a decent IRR but an investor will not use spot and forward rates as is. They will use a much lower rate from current. Assuming they use 60 bucks,....the project is too thing to be worth the hassle. In fact, it is less economic than investing in a solar power plant.