Have we all missed something?, page-9

Hi Ooo interesting post however.

: "Reaching commerciality on each of the Senegal discoveries is FAR's priority in 2015." Each? Yet we are drilling two appraisal wells at SNE and one exploration well "on the shelf", which we assume is at Buried Hills. So how do we reach commerciality at FAN? My HC education suggests that can't happen without at least one appraisal well. Ya and Co, please help me here. They spent a long, long time at FAN and are obviously spending a long time evaluating the results. Might commerciality be inferred from what they already have?

Reaching commerciality on both projects being a priority in 2015 does not mean they will be doing both projects at once and in 2015, it just means that in 2015 the JV will be concentrating their planning on Senegal with the aim of establishing commerciality with both projects and it looks like proceedings will start late 2015.

The quarterly is quite clear that at this stage the focus will be on SNE with the first 3 wells at least bei
ng on the top shelf. That of course is not written in stone yet and like anything is this game is subject to change but the economics are telling them that SNE will be the priority.


Sometimes the wording can be seen as ambiguous especially to HC posters..we just read what we want to believe..LOL

No they won't declare FAN commercial on the strength of one well and have already stated they need at least one appraisal well to establish the approx size of the field. They can't declare a field commercial with one well for the obvious reason that if an appraisal program failed they would be seen as misleading shareholders but that doesn't mean they can't plan for expected production, it just means they can't race out an order a FPSO..

The reason they have an appraisal / evaluation program is to establish commerciality otherwise it would start as a development program and hopefully for us the appraisal program will morph into an appraisal/ development program.

If in doubt and want to know, just send CN an email I'm sure she would confirm the requirements to be declared commercial and would save this ongoing debate.....I'm sure she will not but more egg on my face..

Cheers Whisky