News: Otto Energy December 2013 Quarterly Highlig, page-19

re: News: Otto Energy December 2013 Quarterly... Glad there are some other sensible people around.

It's amazing how many posters talk like Hawkeye coming in is a given, and this is how we'll do it from there, thus justifying minnow JVP's.

Let's assume for a minute that the COS says it will be dry...about 60% are.

If OEL retains 50% (as most on here seem to want) or even 33% as with BHPP, how the hell are they going to afford another well in sub-phase 5 which requires a second well by October 2015?

This is not even to mention that BHPP's $24.5M won't be available until the well has been drilled, so OEL will have to stump up their full WI share initially (if it's minnows).

Deep pockets required in this deep water block, along with deep water drilling experience/expertise.

Don't forget BHPP had the option to walk after one well but retain a 30% WI if they did.
That would surely have to be an option for any big player contemplating 2 deep water wells expenditure at only 40 to 50% WI.
Not sure that they could find someone to stump up for 2 x DW wells and not want operatorship.

If you are correct and OEL do want to retain operatorship, it is most likely because they want Hawkeye drilled first. That was their aim when BHPP came onboard, but BHPP changed the target to Cinco after 3D appraisal...you must ask, why?