Ann: Quarterly Activities and Cash Flow Report , page-7

re: Ann: Quarterly Activities and Cash Flow R... Halberd45 ,

No I don't think Statoil would turn their noses up at a reasonable conventional prospect and I'm fully aware of the size of Statoil .

PFC might have to reduce their interest but there is no way they will want to exit from this project because it is the only one they have and the reason the company was set up .


The plan to date has as far as I know been 100% unconventional and the plan for the second year of phase-1 is what they are agreeing at the moment .

The evidence corroborates the drilling to date as being for unconventional -
- the three wells of phase-1 had three 1,000m horizontals
- PFC talked about "proof of concept" , a term more applicable to unconventional than conventional .

PFC/Statoil's approach of three very expensive horizontal wells contrasts with Norwest and AWE's conservative approach with Arrowsmith-2 which is vertical with small fracs of each horizon .

With the benefit of hindsight it's hard not to get the feeling that Petrofrontier would have done better to drill five or six much cheaper vertical wells to cover more locations .

We will have to wait and see whether PFC and Statoil heed Baraka's plea to evaluate some conventional objectives in this , the last year of phase 1 .

I just don't see any reason to be optimistic that if Statoil were to become operator sooner rather than later that they would drill some conventional prospects to suit Baraka and PFC .