what's with the price rise?, page-10

A LongTom program has a relatively high possibility of success on several levels, but sure the drilling has to be done.
Primarily:
Work over of LT4 will enable the well to access the previously unexploited 400 sand, in short the gas exists, they know it's there but elected not to produce from it.
LT5 will emulate LT3H winding along 5 or 6 reservoir sands to maximise contact,recovery and deliverability. This enables NXS among other things to produce from different zones and manage the various zone pressures.
The original well completion of the 2 wells were very different in design because they wanted to develop an understanding of the field, follow up wells were always intended.
LT was written down because production experience and subsequent seismic combined has shown a more complex and faulted reservoir that is not being drained by the existing 2 wells. That gas written off maybe/possibly/probably still exists.
Such remedial work is not unusual, simply learning from experience and formulating a response to adjust the initial hypothesis. The difference is that NXS decision makers are now oil guys who understand this and not Fund Managers, Bankers who don't as was the case. Greater attention should have earlier been applied to LT and not multiple capital raisings being squandered on Crux.
$100m spent to potentially spin off extra $70m cash flow over 20 years is a good deal as far as I am concerned.
There is no guarantee in success just a much higher probability than 50/50.
Hope this helps