Here a brief report from Hartleys about WPL. Note there comment...

Here a brief report from Hartleys about WPL.

Note there comment on WPL bring SNE into production earlier, I sure that will resonates with the Senegal government.

WPL (Woodside Petroleum, +0.2% to $26.84, m.cap A$22569m, Oil, Gas & Consu): Simon Andrew

• Change in messaging to now include a “Growth” strategy. Demonstrated by the entry into Senegal, Greater Enfield Development, and aggressive drilling program in Myanmar in 2017 (7 wells).
• Bid/offer spreads on asset values now at a much more reasonable level – expect more M&A.
• Cost of services nearing a bottom – think 2016 will see further deflation in costs, 2017 will be neutral, and then a return to inflation in 2018. Bulk of cost cutting now done.
• Once the Senegal transaction has settled, WPL will be agitating for a faster route to production.
• Swinging the gas/oil mix back towards oil with the entry into Senegal, and development of Greater Enfield.
• 1.1bn bbls of 1P reserves meaning approximately 13 years of production.
• Exploring ways to expand LNG business downstream in key markets.
• Expect gearing to remain below 25% after base line capital spend of US$2bn in 2016, and the cost of Senegal and Scarborough LNG.
• Wheatstone LNG – first gas expected from Train 1 in mid-2017.
• Closing Gap Ridge accommodation village in Karratha because the W.A. government will not extend the lease. Will not build a new village because there are plenty of beds at other underutilised villages in the area (Searipple for example).
• Whilst we do not formerly cover WPL, they have regularly presented to us over the past 3 years. A far more upbeat message around growth, costs, and the expectation that oil markets should be back in balance by the end of 2017.
• No formal coverage