Michael56>Ideally we would be in a position to spread the risk across a number of wells which implies a funding package to pay for them. Having everything rely on the success of just one well is not ideal to say the least.
I understand share holders wanting the excitement of a drilling campaign and the sugar hit to the share price. But I have to disagree, unless there is some sort of economies of scale, I prefer a step by step approach. Drill, learn, pay some 15% debt off. Hand off the daily running to the BAU team and then scope for the next target. If they want to derisk then they can do that by partnering with people.
In other news Natural gas is still running at $3 so I am hopeful of long term, stable oil prices at these levels. This bodes well for a funding package.
Have a great weekend everyone.
(Source oilprice.org)
