STX 2.50% 19.5¢ strike energy limited

I can see your point but there are also financial and geological...

  1. 3,626 Posts.
    lightbulb Created with Sketch. 1134
    I can see your point but there are also financial and geological factors along with technical and safety. If I assume these wells cost $10m and the well is half drilled and hit a reservoir that is not confluent with WE2 , then this requires a new geological model which is supported by Lame and the co. If it costs another $5m to modify and retro fit the requisite gear to continue to drill to 5Km which costs an additional $5m (the other half of the well cost) then for the cost of completing the well you could have a new well that is better suited to the new geological model. Add to that, what I suspect is that any retro fit would require placing a new casing inside the existing casing which would reduce the capacity for the well to perform as a producer. I am not a geologist or a drilling engineer but it seems to me one could end up with a sub optimal well from the geological and production aspect for the same cost of new well better suited to both. In other words throwing good money after bad. If my crude assumptions have any merit I have no idea where this would leave STX and WGO wrt the JV agreement. Just a muse on my part.
 
watchlist Created with Sketch. Add STX (ASX) to my watchlist
(20min delay)
Last
19.5¢
Change
-0.005(2.50%)
Mkt cap ! $557.8M
Open High Low Value Volume
20.0¢ 20.5¢ 19.5¢ $2.576M 12.88M

Buyers (Bids)

No. Vol. Price($)
43 1757671 19.5¢
 

Sellers (Offers)

Price($) Vol. No.
20.0¢ 756660 4
View Market Depth
Last trade - 16.10pm 24/07/2024 (20 minute delay) ?
STX (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.