Realistically though, I don't think ODP approval in 2017 is achievable, especially as CRR approval is already estimated to be nearly 12months late. Management's unrealistic timetable estimates is what is causing a fair bit of the problem.
Things missed by the market and some contributors is the cost of drilling has reduced significantly in the past 2-3years plus flow rates from new wells are probably double what they were getting 3-4 years ago plus contract gas price is higher than what is was around 3-4 years ago, so this all bodes well for a decrease in commercial threshold since the previous announcement.
All looking good and I'm not disappointed that SEH have stopped the capital spend for drilling and infrastructure however need to start meeting stated targets or announce a more realistic timetable. Also I'm a little concerned about cooperativeness of SOE's and whether they'll have access to funds to aid the expected CAPEX and whether their timetable will be aligned with SEH's shareholder's expectations.
SEH Price at posting:
3.3¢ Sentiment: Hold Disclosure: Held
