Couple of points I’d like to make. I come from a drilling...

Couple of points I’d like to make. I come from a drilling background, not a finance one, so bear with me


This well is a deepwater well which is now targeting stacked carbonate reservoirs at a depth not previously drilled in offsets.

a. It would be safe to assume they are casing off the existing reservoir to deepen the well

b. The general nature of deepwater, deep carbonates, IMO, screams high risk drilling. Mostly wellbore instability and losses as we get deeper and deeper.

c. If hydrocarbons are encountered, and the rig is already kitted out with a well test spread, I’d pay the extra bucks and get this well tested rather than going straight to P&A


My conclusion

a) Either the well is taking longer than expected due to drilling complications arising from the Aptian carbonates. Extra time = need for extra cash

b) Or they have encountered hydrocarbons and are choosing to do a well test, which also requires extra cash.


My only question is, wouldn’t they go out to market and give an update on what they need the cash for before they actually raise it?