Farm outs r not done blind-folded, but then again everyone wants to get rich quickly. It's a 2way street, prospect of hitting it big by the farminee & the option to recover the costs by the farmour. If it comes off, then things go to the nxt phase & then appraisal/development kicks in etc etc.
A lot of Due Dilignc is done by prospective farminees in the data room, some can opt out simply coz they dont like what they see, some can stay back & nut out the finer details & then there's always those who r just curious to know whats going on. A confidentiality clause always remains in place. So to suggest a pump or we told u so, seems a bit lame.
Simply put, u see a lot of minnows in Oz going down this path (CGS, conventional & Shalegas) & then eventually farming out to a Major player. Takes a while to become a producer which is a topic for some other day.
Geophysical data interp & history of the area r the first step, b4 the entire theory is put to test by drilling a well. If they hit the motherlode then u get lifetime bragging rights to barrack frm rooftops, if not, then the proverbial hits the fan & the knives come out in a group therapy session. That's exploration sector in a nutshell.
So, if PBR got it wrong at A#1 or ENI found enough CO2 to mkt a new brand of fizzy drink for fido, does it mean DM & his team or PBR/ENI's seismic gurus got it wrong, think abt it. Then again, on a stk forum opinions & theories get banded around. AS much as one likes a fairytale ending, this one seems to b stuck on Elm street.
Oh well, tomorrow is another day, noticed Punter's calling it stumps at the WACA.
MEO Price at posting:
18.0¢ Sentiment: Hold Disclosure: Held
