Cant say I agree with the block 9 bit. Once you get a production permit for that field , say over 20 yrs, it is a common practice to cede it from the block and sell it off . This is affirmed by Aussieoiler in his recent post. As to efficiencies , Sonangol would have it's hands full doing a field development, it may well be in their interest for MAY to continue with the exploration side of the rest of the block especially given MAY's geo's. Clearly Zapato has been drilled close to the hopeful accumulation, so when 3d affirms it, it remains a viable target then. I was interested in Alexei's geological assessment more than drill capabilities. As to contractual obligations, a contract is merely a mutual agreement between 2 or more parties, usually in writing. It can be altered, abandoned or otherwise varied at the whim of the parties. AP specifically stated MAY, as operator chose to persist with Zapato. In other words MAY held Sonangol to the contract. Not the other way around and Sonangol pulled the plug immediately at TD. Which given Waitsia, may not have been wise. Personally I was dissapointed they didnt fudge another couple of hundred m.TBC
MAY Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
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