actually the glass is half full, page-13

So.... How's everyone feeling after having had a bit of time to digest the latest announcement?

Seems like the broader market as a whole isn't perturbed by the water cuts mentioned, which makes me think that those who know more about these matters than me agree with the companies' analysis of why it's happening.

Redal, I'd be concerned if wells were starting to water out, but the fact the JV have been able to explain why the water cut is there is reassuring. Poor cementing, suboptimal well location and flowing the wells to fast. Not great news, but at least they are gaining experience and knowledge of the field. L44H - D1 flowing at 3300 is a bit of a freak well, I wonder now whether they will have the confidence to flow future wells at that rate?

The great thing about this stock is the fact the drilling campaign is so aggressive. The last 3 anns have been average, yet (if you believe the dream) you can't sell out because the flow of news and drilling of new wells just keeps on continuing! I expect next week the SP will align roughly with market movements, and then maybe move up a bit the following week in expectation of the next lot of news.

In relation to NSE-A1, the last ann states: "The well is located at the crest of the NSE Central fault compartment, offsetting the L44H-D1 well which is currently producing at 3,300 bopd." Does this mean L44H-D1 will be shut-in and replaced by the NSE-A1 well?? That's my interpretation of what they are saying, which worries me a little bit. They have a gusher, and are proposing shutting it in to drill a well type that they have never drilled before... Hmmmm. I hope they don't stuff up, otherwise the SP WILL get hammered!!

Thoughts people?