ann out!!!, page-36

Hi SF,

I think that the jack-up production system will only be capable of 10-12k bbl/day so there will need to be additonal wells tied in to make it work.

The most interesting thing for me will be to see if they complete with a subsea tree - they could just tie back to surface and use a surface X-mas tree - but this would make the change over to an FPSO based production system more complicated.

If T-1 is completed with a subsea tree it is a big show of confidence that a full field development is contemplated in the near term.

It is interesting that the plural was used recently when referring to the trees - makes me think that there are two trees on order one for T-1 and one for Y-1. If NDO are confident they will tie the trees to a subsea manifold and then tie the manifold back to the rig - this makes it much easier to replace the rig with a floating system and to add additional wells into the system.

It is difficult to predict the $/bbl because it is so highly dependent on flow rate (fixed costs / bbl). If a couple of wells can be tied in and give anything over 15k bbl/day over say 5 years (this will no doubt require new reef targets to be drilled to maintain production) then they are in really good shape (costs of +/- $15/bbl or roughly equivalent to Galoc but with much cheaper wells).

p1000