I think we currently have enough (just) to carry us thru the three wells. BUT we only need enough (with contingency reserve) to see us thru the first well. After which a CR can proceed.
CN is very positive about the COS. At 50% she is not as optimistic as CNE's 80%; but the truth will probably be somewhere in between, which is a very high figure. Anything can happen in the oil game (example, SNE found oil where they thought was gas, hence SNE was 2x predrill estimates), but I think we are not looking at a failure. CN also mentioned in the IP that the time the results are announced (hopefully good news) would be the best time for a CR. (Some one posted that she was for a CR prior to appraisal which is an opposite view).
I also got the feeling that CN wanted the shoulder to be drilled first as that has the highest COS; also they think there is a chance that it might be connected to SNE1 and that would then give us the 1 Bil monster.
I think (I am guessing from the vague discussions at the IP) that there is a chance that CNE might drill Bellatrix first (she said all to be discussed still) as that might also give us a second shot at SNE below, which will give us the 600 mil plus what ever is on top.
(I did make it a point to ask CN at the IP and I posted this previously).
I do not think that we are backed into a corner to do a CR before appraisal. Clearly with a 50 - 80% of COS I am pretty sure they would take the chance and wait cause regardless of which one they choose, a good result will enable a CR of I would imagine 15c at least.
KKW
FAR Price at posting:
9.3¢ Sentiment: Hold Disclosure: Held
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