Nice to finally see the report. They finished drilling on the 13 Mar, run logs, and P&A. Did that take them 2 weeks, or has it taken then a week to build up the courage to release the information?
Anyway, as I was saying before they started this drilling campaign, this was the first well to drill the Pre-Permian formations at a suitable depth, and you don't know what is there until you drill it. This is a point they are very keen to remind us about, now that they found out they didn't have a clue what was down there.
They may have learnt a lot by drilling this well, but they never actually achieved their target of the Dey Dey mudstones, even after extending the depth by more than 400m. I wonder if the Gustavson Report will be revised due to these new findings?
As to stopping drilling and postponing Fox #1. That makes sense. They obviously have realized they have a lot to learn, and re-crunch the numbers will certainly help. The other thing is they would have already spent their drilling budget and do not have any money to spare. Also the speed that the drilling industry has slowed down, if they were to ask for new bids today, then they will get at least 20-30% discount on the day rates.
It is a shame they didn't find anything, but that is drilling.
But my last question is what happened to the bits they did find? Pata #1 in the Stuart Range formation. Samples were sent to Brisbane for testing. I will guarantee they stated the results would be known by the end of January. I hope they meant 2015 and not 2016.
Come on Mr Linc, results please. Good or bad, so we can close this little exercise.
LNC Price at posting:
99.5¢ Sentiment: Hold Disclosure: Held
