GGP might (and I say "might") be interested in developing another well but whether the other partners are so keen is another matter. Drilling even to the Miogyp is tricky. J#1 was delayed with problems and ended up expensive and accepted the Miogyp as an acceptable prize at that stage.
Sure they might increase production by another 500 bopd (which is not to be sneezed at) but it does not increase the size of the reservoir or the reserves. It just increases the rate at which the Miogyp is being depleted.
GGP could by using its money to drill elsewhere could strike another cashflow source and therefore increase its reserves. Jumping in straight away and drilling a development well at Bullseye probably will not add to GGP's reserves. Unless they drill into a supposed extension of the Miogyp reservoir and prove that.
However we really need to know what the result of the reserves estimate study has produced and what GGP may say in the Quarterly.
But I'm picking that GGP will go with attempting one or two of their other ventures/propspects before they have another dabble at Bullseye. It is doubtful that Bullseye represents any real upside for GGP now.
GGP Price at posting:
4.6¢ Sentiment: Hold Disclosure: Held
