re: Ann: Service Contract 58 - Election to Dr...
This is only agreed to by their JVP, the DOE response is what matters.
NDO's previous reports alluded to them possibly letting go of the SC and consolidating.
Perhaps the mkt has sold it down because the ann indicates expenditure which NDO don't have, and won't have by the well commitment date in Jan 2014 either, not even if W.Linapacan was pumping now!
This is a USD$70-90M dry hole wildcat that NDO has to pay full cost on to earn their 50% farmin.
They haven't been able to pull a major farmin partner in the last 5 to 6 years of trying, despite being "in negotiations" with majors for the whole period.
Are they magically going to land one in the next 6 months?
If a DW well was going to be drilled by the commitment date, long lead items would be being bought now, or earlier, plus rig negotiations, etc, etc.
If I thought the DOE was automatically going to extend the well commitment date, I only have to look at their reaction to the turn of events with BHPP and SC55, and that project already has a major involved.
NDO Price at posting:
2.5¢ Sentiment: Hold Disclosure: Held
