"And as Cath said, we have nothing to lose and everything to gain."
Yes OOO it's just as simple as that and compared with the cost of drilling an exploration well, a million dollars would be an absolute steal on a risk reward basis with the odds of success considerably higher than 18% , we also know the target is commercial before we start...PE is our cheapest well ever but it will take a while to reach TD unless a settlement is reached...
BRAVO OOO you once again provided a highly entertaining insight into the small print of the Companies activities even though this board will decend into its usual state of paranoia fairly quickly no doubt ...its sad to see so many unable to put the worst of the detractors on ignore but that's life in a traders forum...
The highlights for me other than OOO's report was the inclusion of Sirius into the SNE Elephant , the results of the testing and the potential of A2 ,which we were already largely aware of but is always nice to hear again with a bit of flesh added to the bones....Oil is the reason FAR exists and finding more is priceless...the next resources update on SNE will likely be the last for sometime unless we put a well into Spica and will be come a combination of resources and reserves going forward.
As Cath alluded to, the size is largely irrelevant beyond the next resource update as Phase one will concentrate around the core and the production rate from that will be as high as it ever gets...140,000 Bopd sounds very achievable as does 2021 for first oil and my hope of $30 per barrel break even also looks likely.
As the field gets developed it will most likely grow as they push further out to the boundaries and technology evolves around improving recovery rates..
This field is looking very likely to reach one billion barrels but it will be a long time before that is known for a fact as appraisal is now finished it seems..
The fact that there is still a lot of waiting involved going forward hasn't changed and will test the endurance of many here but it's out there ,obvious and decisions need to be made around that reality IMO...
Thanks again OOO and your contribution to this forum is very much appreciated..I hope you and Mrs OOO had a productive post match function...
Cheers Whisky
(20min delay)