uncovering undervalued oil and gas stocks-nen, page-22

Groucho, I think you asked a TD question re 120. Yes, its not different (it is but its marginal in terms of depth)

BHP 'missed'. Also the 3D modelling by NEN shows an intact trap.

BHP wouldnt have had this technology, and thus did not identify the underlying channel which breached the Miocene oil accumulations:

A hypothesis has started to surface as a result of the Ca Ngu selection. In view of the above, and deeper/hotter formation in the Oligocene, its possible that the hydrocarbons are ‘higher-up’, rather than being in the miocence carbonate reef. And hence, why the well isn’t going deeper than the BHP attempt. Remember the channel is NENs interpretation, it may not be the reason for lack of commercial resources. The other thing I’ve been thinking about is cost vs risk. There are better (my opinion) indications of hydrocarbons in the shallow sections. This will keep costs down whilst also managing the risks given the understanding of the BHP well and any learnings from the Origin well in B121.

Going back to B105 for a moment. Some other things to ‘ponder’ but don’t get a mention very often:
- PetroVn (I believe) have a ‘back in’ option to acquire a 20% interest in the block in the event of a comm. discovery, thus diluting the tri-party shareholding, pro-rata
- The block is prospective for oil too, via Song Ca. Previous indications were for a exploration well within the next 2 years.