Reading Eni's quarterly report which was relaeased today the only reference to the Australian drilling program is in the paragraph below p17. When reading through their report it makes one realise what a fantastic job MEO's board has done to attract the likes of ENI. Heron, compared with what else they have going on is, at this stage, small change for them. If Heron is economically viable they will not waste any time progressing it quickly. Australia and oceania rank eighth and a long way off when compared with what is spent in other regions. With regards to the article below I particularly like the words start-up and ramp-up when referring to Australia and Russia
They also mention barrels of oil compared to cubic feet of gas which I found intereting. I have included the paragraph from p7
p17 In the nine months of 2012, Eni reported liquids and gas production of 1,686 kboe/d, increasing by 8.3% when excluding the effect of the revision of the gas conversion rate. The performance was driven by an ongoing recovery in Libyan production, the start-up and ramp-up of new fields in Australia and Russia as well as increased production in Iraq. These positives were partly offset by lower production in the UK.
p7 From July 1, 2012, Eni has updated the conversion rate of gas to 5,492 cubic feet of gas equals 1 barrel of oil (it was 5,550 cubic feet of gas per barrel in previous reporting periods).......... Other oil companies may use different conversion rates.
MEO Price at posting:
23.5¢ Sentiment: Hold Disclosure: Held
