old hc back, page-32

Very pleasing to see Autosime and cmonaussie in the same thread. I'd almost take the new HC if I could have more of it!
Auto has been very consistent, for at least a year, in the description that BPT is a low risk way to expose to the Cooper unconventional.
I agree, but I was disappointed with BPT's farmin as it came a bit early for mine, so I sought to restore the exposure with some ICN.
ICN is hugely leveraged to 855, which is why the smallest set back is such a shareprice catastrophe.
The reality is we don't know enough yet to judge whether the Cooper unconventional is economic.
Was the Halifax decline a defect in the well management (my guess) or an issue with decline rates and resource problems that will hamper production across the trough?
Was the Moonta lack of production from some of the frack intervals due to error or a geologic issue?
We don't know.
How much are drill costs going to be in a production programme? How much to process and transport gas?
We don't know.
This is why we are equity investors rather than bond holders, to get exposure to the risk, both upside and down, in this enterprise.
I'm happy to hang on to these assets longer term, because I think the raising gas price will cover a lot of sins in terms of production costs, but it will be a rocky ride.