I also want a clear indication of the final costs incurred (taking into account what was actually expended from the initial estimate given, plus the additional costs incurred after running into troubles).
The prior announcements outlined cost estimates as follows:
Aug 16 (% share OEL) Dry hole costs: US$2.85m Total completed well costs: US$5.65m Hookup costs: US$0.15m No facilities modification required.
Oct 2 Reiterates above estimates.
Oct 22 estimate (% share OEL) Additional procedure (incl loss of drilling assembly and tool): +US$2.0m New bypass/re-drill: +US$1.7m
Oct 30 estimate (% share OEL) Additional +US$3.0m to complete including hookup.
Nov 25 Completed, awaiting production stabilisation, no additional costs indicated.
And here we are in December now with no information yet on what this exercise has produced for the cash reserves sunk into it. The longer it takes Otto and Byron to give us clarity on production, the more it seems like this exercise hasn’t delivered us a new payload.
OEL Price at posting:
1.1¢ Sentiment: Hold Disclosure: Held
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