Ann: Dorado Project Update, page-133

The one thing that would really destroy the long term potential for shareholders would be an overly expensive FID at this time, with us having to divest most of our Dorado (and Pavo) stake for a song, and possibly still have to do a large CR at a low share price.

STO presumably are very keen to reduce their 80% stake before FID (it would be borderline irresponsible not to) and in the current market they probably aren’t seeing any decent interest. So that is probably another factor weighing against the FID this year.

I couldn’t decipher from the webcast whether Gallagher was tending more towards Pavo oil or towards a full blown integrated oil gas project (which he’d absolutely have to farm down). Presumably depends on more drilling and changing market conditions.

Just hoping now that he commits to a larger E&A program for the next year. Fortunately AC topped up our coffers sufficient that we shouldn’t need to raise cash for it.

I can’t remember many oil or gas projects that flew on the first try. Many came back better, or in better form.

EL