Date: Oct 31 67.25 million (Source Sept qtrly inc. Buru sale) Date: Nov 20 63 million (Source Corporate Presentation) Date: Dec 31 56.1 million (Source Dec qtrly) Date: Feb 13 51.7 million Source Corporate Pres. Mar 6th.)
Since the end of October last year NSE has spent approx. 15.5 million - that's around 5 million per month. This is a serious issue. Under the JV agreement NSE seems to have been paying up big time for all the cost blowouts. Just where we stand with the new rig and who pays what I am not sure. COP stumps up 13 million per well and that is it. Given NSE may well have spend upwards of 10 million in blowouts, it looks like COP got the better part of the deal for its 75%, whereas NSE is really under the pump, metaphorically speaking. I
f NSE is liable for all the excess, this is an instance of NSE being muscled around, and possibly not fully understanding the implications of the JV agreement. COP may well have seen them coming, to coina phrase.
NSE Price at posting:
19.5¢ Sentiment: None Disclosure: Held
