OK I will have a crack, bear in mind this is what I think, not what I know. Ya would be better
1. Is that several locations were not optimal. The Upper Stella wasn't tested due to the sub optimal location - is that the drilling angle out of limits or missed location all together?
The drill was a true vertical attempt, so would not have deviation angles. Upper Stellar was intersected on target, but log data showed it was not a good location in the reservoir.
2. Both the Lima's again not intersected optimally - again meaning that the drill angles not within limits too big an angle so they couldn't successfully take samples? Or again missed location?
The plan was to hit the Stellars, the Lima intersects were not optimised in the plan. They had to sacrifice some targets to optimise the stellar intersect locations
A gas play in Alaska has no future without the gas pipeline project. The pipeline project is running at a snails pace and will probably take a decade, which leaves 88e with a stranded asset.
Condensate may have a chance but depends on its gas/liquid ratio and reserve size. Premier walking is a strong indicator for me. To keep their 60% they only had to remain a 60% working interest partner, so given the expected US $25m cost of Charlie 1, only needed to front another $1.2m to keep their ticket alive. Choosing not to, speaks volumes, given they have the data and the expertise to know.
As to 88e competence, I am not so hard on them. Premier also went over the data thoroughly and invested, which independently validated the play at 50/50. The difference between condensate and light oils is up to the drill bit, not seismic etc.
I agree salaries are out of hand, but then I have believed that about executives for decades. The kings have no clothes and never did, how much more deserving is one human compared to the next.
88E Price at posting:
0.9¢ Sentiment: Sell Disclosure: Not Held
(20min delay)