I have problem that haa worried me for ages and one which
someone may be able to help me with.
In their todays announcement they state that:
"The Company advises that negotiations for the sale of
the assets are continuing and the formal sale process has
been extended to ensure delivery of the best value outcome
for shareholders."
If they want to get the best value outcome then why are
the trying to sell before the prove up the five sole
risk multilateral wells that they have spent millions
of dollars drilling at Mungi?
I understand that the have problems with coal fines
in one of these wells and a problem with a pump in
another but, despite the fact that they started dewatering
the last two in the middle of last year, I am not aware
that any decent and consistant flow rates have been reported.
Surely this cannot be a good bargaining position
particularly, if they can be proved up, the additional
cost should be a small fraction of the cost of drilling.
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