hess vs bhp vs the rest, page-13

Buru is also in the enviable position of not having to farm out all the acreage further in a single deal. They can farm out some to a good unconventional operator (i.e. not Woodside) and learn from that for other acreage. The State deal makes this even more feasible over key areas, with work programs in one area a credit to other areas.

They also have a current partner that is likely to agree to dilute holdings in order to bring in a good operator, so that Buru themselves don't have to dilute as much to give the farminee sufficient equity. Typically Mitsubishi don't feel the need for high equities.

I agree with Occam that the better deals come after testing - assuming testing is positive of course! but also agree with Occam that the fraccing needs to be done efficiently.

However, none of this precludes the testing of conventional sands in Yulleroo 4. But if it doesn't happen I am comfortable enough in the quality of the management to believe thye have good reasons. Not a feeling I get with many junior explorers.

I wouldn't rule out Woodside as a buyer of gas though. There's potentail to get advance funding from LNG project operators by pre-selling gas once reserves are proved and this can be a very efficient capital raising mechanism.