This PB lease will turn out to be a licence to print money imo for those who can hold on tight. I'm expecting another rollercoaster market in general this year but GGP should do exceptionally well.
The JV details will be crucial - how big a % we give up is an unknown, but I'm hoping a 50/50 split will be the outcome. ELK gave up 65% when they JV'd their Grieve EOR project with Denbury and the market didn't like it, so hopefully SG fights the good fight and keeps hold of 50% or more.
Overall todays update was a satisfying read but I would have liked to see an actual target set for production out of well SRH1 considering that should be our best verticle. Four months of testing is a bit of a stretch imo; it's been the most puzzling thing about the whole project - remember they were all set to tie in the gas and get producing, but I am putting my faith in SG and the team to do what's best to grow the company.
DJ
GGP Price at posting:
2.0¢ Sentiment: LT Buy Disclosure: Held
