Peter, Imho, the announcement pretty much said it all,...

Peter,

Imho, the announcement pretty much said it all, optionality. They plan to keep their options open and their cash burn down, with more than a hint that we will likely be substantially reducing our exposure to any development, but that we aren't yet ready to decide definitively.

What I was surprised about was their bargaining power, that they were able to only fork out 25% of the estimated cost, with apparently low cost. Imho I doubt Quadrant would be risking paying 75% of someone else's costs if they were even only 50% confident. They must be seeing this as high probability of delivering what they want (and hence being repaid by CVN one way or the other).

Hey I didn't expect another 3 cps jump, but I did expect this strong expression of confidence as getting at least brief 1 cent lift. Even a pessimistic would see that we were going to get off the hook for 1.5 cps of our costs on any disappointing result, lol. At 0.5 cps per well we can almost drill for ever.

EL