Remember that MEO has already recv'd US39m frm PBR.
ANd PBR r paying US$41mil for the drilling costs, so they own the data frm this well (drilling/gas,geological, mud reports & all overheads for pipes/personnel, righire).
From the operations geo data, they would want
- Reservoir samples (aka cores & cuttings, these r all bagged & tagged, std practice),
- WL logs data (MDT, gas samples, porosity/ permeability & all relevant reservoir data),
- Rig geo's report (i.e, well completion report) amongst several other things.
- And if they really want further proof, they can flowtest A#1.
That should see them sign a 2nd 'bonus' chq.
Note that we r not in the reservoir yet, but shouldnt b far from it. Should get back to drilling by early Thurs. They'll make sure the BOP's r secure.
I'd rather see this part cemented & safe behind casing. They can always perforate this interval at a later date, should they really want any additional gas. But for now the eye is on the bigger prize below, ie Calypso & LG.
MEO's 25% share of the 12 TCF rec gas is 3 TCF (still a decent figure).
I skimmed thro' the Bailleau report on MEO's website (see link below).
They r still valuing it between 73-161 cents with a midpoint of $1.16. IMO, they too r playing it safe, we all need confirmation of gas in the main reservoirs & then the prospect should derisk itself for the future two followup wells.
