Hi All,
For those interested just Posting my key takeaways and summary notes from the latest release.
Slides 1 & 2 - Points
1. Funding for first round of development drilling from current cash and expected oil revenue. Still not at all clear to me what area the 46MMBO Reserves relates to? Also, would think, on the basis of A-2's Unit 1B initial production results, that once production is established that full development of Unit 1B could be hopefully financed from oil revenues by adjusting timing of drilling?
2. No mention of funding from farminee - possibility that farming out the development of Unit 1B at this stage is on hold until at least initial production results are seen - very much hope this is the case - as if all goes well then Unit 1B may be able to be retained by MAY at 30%.
3. As best as I can define MAY are currently planning on five "development" phases - IMO, a phased development approach is always good risk management.
4. Adding perforations to the lower area of A-2's Unit 1B - excellent - attempting to maximize flow rate from initial well.
5. Excellent net pay results from A-3's Alameda & Marti reservoirs.
6. Higher than planned mud weight - potentially poor oversite of drilling operations?
7. Mentions potential to bring in a Farminee etc. for development of "Block 9" and not specifically Amistad's Unit 1B. IMO, very positive if this is the case, as Unit 1B has been strongly promoted by MAY as a high impact lowish risk development and if the first production wells prove this then hang onto our current 30%.
Slide 2 - for those interested, just my summary of MAY's recent and current work programme as best as I can define.
GLTAH
Cheers
VOGC
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