re: Ann: Apache farms-in to coastal and easte... Just my 2c worth.
When I first read the announcement, I was a bit miffed that Buru were only picking up 25 million for giving up such a huge percentage of their acreage. A 2nd read suggests that the 25mil relates to the coastal permits and that the Southern permits have a separate deal attached to them, which will probably amount to an additional $15 mil or so, or perhaps 50-100% more if successful.
I don't agree that these Acacia wells will cost up to $15 million each, as the depths will be much less than those we have seen drilled into the Laurel formation. Success however, will bring a new dilemma-the difficulty of determining the economics of developing a field in such a remote region. Happy to have Apache along for the ride on these permits, even as operator, with Buru maintaining a meaningful percentage into production if achieved.
It's a relief that Buru have farmed out this acreage and the work programs which go with these permits. There is absolutely no way that Buru was going to be able to fund or indeed manage the work programs for these permits, which were rapidly reaching the point where the permits would have to be forfeited. Now they can concentrate on proving up the massive contingent gas resource and drilling exploration wells in the Ungani region which is shaping to be the most productive region of the Canning, at least in the conventional reservoir sense. I'm looking forward to seeing exploration wells drilled on this trend, as to me it seems highly improbable that more oil will not be discovered.
So now we just need to get over one more hurdle.
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