EGO (ASX) Ann: Contingent oil resources at Red Gully North-1

Originally posted by docmin24 ↑

So another pleased to announce, but is it really?

200000 bbls at say 50c = $10M, minus all the costs involved such as removing/storing water, consultants etc plus the ongoing remediation of this troubled well into the future - there will be many? So what's left?

To drill this well cost well over $20M, and costs increasing daily as we still have all these consultants employed must be well over $2500 a day.

So my point is this especially when considering this well could take 3 yrs to actually see us selling any oil, ponds have to be built and of course the huge water issue. The end cost over this 3 yr disaster could actually end up costing $30M.

Doesn't excite me one bit as the gas reserves of flow rate is very small along with the oil. Most companies wouldn't bother but we are not like most companies are we. We spent a fortune on this low risk, easy well which our team decided to do didn't they.

Will we actually ever make a profit and considering the costs and delays was and is it worth it. Meanwhile big profits to be made to the nth but we can't fund it and have to sell half of our stake for someone to assist us.

Am I the only one who see's this well and our situation as a joke. How the hell did we ever become what we are. RGN is a complete waste of time, money and while we continue on this our dream of unlocking value and becoming a producer of choice is just a dream, pie in the sky.

When is our board actually going to say sorry holders we just completely stuffed up big time here. I struggle to see it being a break even or economical well. What am I missing here?.

All I want to here is who is farmin and when are the drills hitting the north. Completely over RGN and tired of company wasting time on this. Get cracking to the nth and come back to this disaster later on when we can afford it. But they have to continue as spent way too much and RG reserves depleting. What a sad state we have become imo.

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docmin24.

To have drilled in the north I think you would have to give more than 50% of EGO away with drilling the well and build a plant to sell the gas it was said the gas could be tolled but that would be relying on some one else and may not be available.
If you are going to drill the well you must be sure you can sell it.
What did you have in mind in that situation.

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