a little fun, page-38

Dear Choptip,

I think it was written in a brokers report that the Prospects of Success or Chance of Success was about 10% for all the Vietnam leads. That is why this new lead identified very recently is such good news. I don't imagine ENI would walk away after one dry well from the Blocks in light of promising 3D seismic data. If they are keen to drill more could they may demand more of the smaller partners?

If as you write one well will not suffice, a view I agree with, then other leads can come into play immediately until gas and/or oil is found. The PSC dictates that at least one well be sunk. At a rough calculation of $125,000.00 a day for a month for a rig and if that were to be shared on an equity basis, a million dollars from NEN would seem to be about the figure for each new well.

I have reading up on stratigraphy, submarine fans, class III sands, AVO, pre stack and post stack and it is not easy reading- the maths is beyond me for a start! It is very interesting though. It seems that in the last 50 years there have been great developments in analysis. The emphasis is on derisking the project- trying to sort out false yet alluring zones of potential from actual resource. One often cited case about DHI analysis has been the Gulf of Mexico where it was assessed as no resource in situ which now we know to be wrong. So not only to you have false positives you have false negatives.

Sorry to go on but the morale of the story for me is that in ENI and CGG Veritas we are in with the right crew. Not some hack promoters but serious monitising corporates. Like 3D seismic data the right help and experience doesn't guarantee success but it certainly helps the cause. I don't know what will come of it all but I am sure that we are in with the best shot we can have to be successful, and if you are talking derisking, you can't do better can you than NEN right now!?