Ann: Mukuyu 1 & Sidetrack Well Results, Rig Secured for 12 months, page-43

Well not the announcement I was hoping for but I wouldn't be giving up on IVZ just yet. Going over thhe announcement:

1. T bar clamp broke during the fishing operation. I've never seen this and a pity there wasn't a spare on site.
2. Wireline was freed from the borehole wall but then the tool became stuck. IMO, based on the limited data at hand this suggests that differential sticking was the issue not key seating.
3. Tool took significant overpull to come free resulting in damage to the tool. Tool unserviceable as is the back up.
4. Rig to be warmed stacked at Mukuyu. Warm stacking is where a rig is stacked but a bare bones crew is maintained to carry out maintenance and modifications. Sounds like Helium aren't taking the rig after all.
5. Sounds like review of service companies is going to happen with a replacement being soured for BH. A good move in light of BH's performance on this well but in this situation where one company has been released due to below par performance other companies are going to milk the situation and come in with high bids for the work. The joys of dealing with service companies.

My overall assessment - Mukuyu-1 proved up a working operational hydrocarbon system but purely technical reasons prevented declaration of a discovery. A lot of valuable data was pulled from the well in addition to a bunch of lessons learned that can be applied to future wells. One thing I would be looking at is running LWD as a replacement for wireline.

Over the next few months I have made adjustments to my SMSF investment plan that includes allocation of a modest amount of funds for buying back into IVZ.