Gday Harry,
Even the best of 30 year experienced O&G professionals need a run of good luck when their risk assessments are found to be overly optimistic. In the face of 50/50 COS which looked very prospective way back when the decision to spud in at RGN was made, it certainly doesn't look that good from what we are seeing now.
Methinks there are some really serious methodology issues involved in their decision making. Certainly their risk profiling and value proposition assessments, even good old present value investment analysis on the worst case capital outlays from when the well was commissioned need some review. To say nothing of what they may have learned from reassessing the logs from the adjacent well drilled some time ago. Is this the head shed operating at its absolute best?
My question now is 50/50 COS of what?
Is it 50/50 COS of recovering the invested funds over the next however many years?
What is really looking wierd now, after many years of perseverance is; This is looking more and more like a "When the money runs out we will all find something else to do" story?
I can't be happy with that, and I can't imagine that all the faultering stalwarts will be either.
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