Another 2 fields judged economic, especially considering the current POO.
Interesting to note that the cost of brining Balgowan online is only $1.3 million. Even with the POO in AUD at $71, and they only recover the 2P (which if you look at the actual recoveries achieved in PEL 91 and PEL 92, will most likely be beaten easily) of 334kbbl, that will provide revenue of $23.7 million. The western flank costs approx $25 per barrel, so they will clear $15 million. A tidy addition. Of course, if they get closer to the 3P estimate, then the number get much bigger, with 1.53mmbo recoverable, with $109 million in revenue over the course of the field, and $70 million cash put back into DLS/BPT (of course, the split is 60/40).
Also, the field will kick in before the end of the FY15, so that will assist with their full year production target.
For a while there I thought the other discovery, Burners-1 might end up being P&A, but it would seem that BPT view it as economic. A shame they could not provide an estimate of the amount recoverable, but it would probably be smallish 100-200kbbl. None the less, because it will be so close to the Stunsail production facility, it will be easily tied in in years to come.
Disappointing to see DLS sp hit so much, but clearly its heavily traded.. so comes with the territory.
We should be getting some more news regarding the other flax wells soon, and perhaps an update on Vanessa?
BPT Price at posting:
$1.05 Sentiment: Hold Disclosure: Held
DLS Price at posting:
81.0¢ Sentiment: Buy Disclosure: Held
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