LSE: posts 17/08/16 23:12
Reaper666:
"As we are on the cusp of news - two comments. Firstly, fantastic posting today - always want to engage with Phrontist but he always has all bases covered. But all fantastic - Belisce on top form too. Secondly, I still feel DW's idea of a two-bite ann will raise complex logistical issues with many SP opportunities. How will first ann refer to the second? What tone will first ann convey to impart momentum over subsequent gap? What will the essence of the content be? (seismics - yes; but what slant on interpretation?). Will it be 1. We have conventional oil potential 2. We have more conventional oil potential OR might it be 1. We have xx potential 2. We are going to change original plans in light of this and monetise by........
Looking exciting. VGLA"
Tim0:
"I couldn't agree more, we have some really great posters on here.
Like you, I am fascinated as to how the conventional can be used to de-risk Icewine #2H unconventional. Perhaps this is another reason why our SP has been hesitant over the summer as we are either heading for a fantastic success or a bit of a flop.
I don't think a less than ideal result from Icewine #2H means 88e will be in crisis but certainly questions will be asked as to how we would proceed. If we can develop the two activities, unconventional and conventional in parallel then we can reduce our overall risks substantially. As a result of a well publicised risk-mitigation plan the market assessment of 88e risk will be reduced and we should see our SP strengthen.
This is definitely one line of questioning we should be putting to Dave Wall on the 9th.
It all relates to the question of further funding, it usually does.
A second line of questioning, again relating to funding plans, is how does Dave balance a Farm out against a further share placing? Surely we have to give something away in terms of oil, which implies acreage and future asset value, or we have to accept further share dilution. Is this question answered instinctively or is there some formal Cost Benefit Analysis equation balancing this decision.
How do these two options of further Share Placing or a series of Farm Outs compare to a Phased Strategic Investment. To me this seems the preferable third option as we share the risks in a managed way but we also have a committed buyer with us all the way through the programme.
I am trying to capture these questions in a suitable form to ask Dave Wall during Audience Questions for our London Presentation 9th September.
If anyone else has some questions for Dave be sure to collect your thoughts and be ready to put them to Dave or send them to me and I will ask them on your behalf."
Questions for Dave Wall, Paul Basinski, Stephen Staley?
email them to
[email protected]
(20min delay)