Ann: Preliminary Final Report , page-8

7.L20/50. Run these 2 statements together- a. " we are having a good look at why we didnt strike oil" (or something like it,made recently) and b." ..we have received some encouraging new info. in relation to geochemical analysis of drill samples and new discoveries in the region that has the CVN team reassessing their previous leads and prospects.." and what have you got ?
I took ages to have a good look at L20/50 and when I did I was both enthusiastic and disappointed when they tanked. Note that L20/50 is in the same basin as Sirikit. The latter is an absolute blinder and its a sandstone field that produces at an average of 400 bopd times 500 wells .Nobody has put a new reserve figure (officially) on Sirikit,sticking with the 200mbbl figure in force for many years but the chairman made a public statement in mid-2009 that he reckoned the field could contain a billion barrels and last for a minimum of 40 years.
The 40 years figure has since been ratified; the 1 bbl is I dont know what but it got heaps of publicity in the Thai dailies when it was made.
I continue to rate L20/50 as one of CVNs best secondary assets and success here wont surprise me.

The above incorporates both announcements made today. One deficiency in an otherwise brilliant(not the dollar figures!) pair of announcements relates to an ostensible "dedicated" S plan being to go for SHALLOW targets in the oily patch (WB,WBext and maybe L33) yet they have first gone for a V target with the big rig and if unsuccessful then on to a DEEPER S target.
What are they up to? Is the tail wagging the dog? (that means that the Big rigs cost/bulk/capabilities could be determining the drilling strategy for the present).
And what do they mean by deeper? At WB the shallow S targets were at 300-700m and the deep ones mostly in the range of 900 to 1300 plus. There is nothing cheap about S drilling when you go down to these depths and a 200bopd find would not be classed as much of a success when you take the cost into account and the time the rig is out of action for the much more certain shallow S drilling.
All in all I think we can see what the partners are trying to achieve and full credit (except the deep situation) for the detail about the now dominant S plans.