Hey guys - I am interested to learn about KEY's plan going forward. The management maintain that a drilling program will commence in the Po Valley in the second quarter of 2008. Errrr, that's two weeks away. Although I am aware Q2 2008 could easily mean the last week of June, I am expecting clarification from the company soon.
I think it is easily possible that the Italian project will be put on hold and they will commit to an appraisal well of the Kiliwani North structure. Personally, I would rather see the company have a go at Italy before they attempt an appraisal of KN.
The company's Borsano permit is equally as close to established pipeline and infrastructure, the differences between Nyuni and Borsano seem to favour Borsano. Gas prices are $14 US per thousand cubic feet, and the Po Valley is one of the most prolific hydrocarbon producing provinces in Europe. Costs to KEY of drilling one well there is 3M instead of 5M for Tanzania. Furthermore, KEY maintain 100% interest instead of 20%.
Ideally, what path do you guys wish the KEY Petroleum team to take?
SS.
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