CN on Commsec executive series, page-72

Thanks Whisky, you are spot on with your comments about the thin sands. What we need to consider is whether those thin sands become more blocky or better developed the further north we go (which has resulted in the large increase in Sirius) and whether Sirius and Spica will become part of the northern extension of SNE as these sands are the same sands as those at SNE (and Soleil which has become the southern extension of SNE). Looking at the prospect map this is not hard to imagine and would take SNE to 1.134b if proven correct.

In last year's drilling campaign it was mention that they may drill beer or one of the other fans as an option but the focus was always on SNE, my personal belief is that COP trying to sell to WPL cut short last year's drilling, but that's a different story. We are now seeing a lot more from CNE and FAR about the 500m oil interval and it now appears to be an objective to test these prospects. It could be due to reworking the seismic data with all the reference points from SNE and Bel drilling or CNE may be motivated to prove as many prospects as possible prior to selling down part of their 40% to maximise their sale price.

As always its a long game, which each individual has to come to terms with, personally I feel comfortable with management and my investment.

IMHO

Zip