G'day HKP.. thought I'd post the link below re phase 1 production costs for Jubilee - not as bad as I was expecting at $1.1 bill. Now if fonty has his finger on the pulse and early production is possible from the current SNE -1 well than I would expect this cost would be a fraction of this as jubilee production had 8 new wells drilled, thus his desire to find funding to allow FAR to keep it's current stake without 2 much dilution. Early production from the simple SNE -1 structure may enable a financing agreement for future production on FAN - 1 and appraisals - just thinking out loud and interested to hear thoughts on this.
Someone may explain to me why companies do not utilise these extremely expensive exploration wells to create early cash flow all the time now we have floating production platforms. Milk the well for what you can while you follow up on future wells to get the most out of the field. P & A it after it's of no further use? They would probably pay for themselves instead of leaving a $200 mill hole in the ground.
By the way CNE is now up 17% or just under $300 mill AUD since SNE - 1 discovery announcement which equates to around 9 cents per FAR share.
Cheers
Plugged
PDYOR
http://www.subseaiq.com/data/Project.aspx?project_id=382&AspxAutoDetectCookieSupport=1
Tullow Commences Phase 1A Development on Jubilee
Type: Status Update
Jan. 2012 - Tullow Oil reported that Jubilee's Phase 1A of development has been approved by the Government of Ghana, and drilling is expected to commence in March 2012. The operator will use the Sedco Energy (DW semisub) to perform the drilling operations. This phase of development consists of drilling eight new wells (five producers and three additional water injectors) and expanding the existing subsea network. It will be conducted over an 18-month period. The total cost of Phase 1A is projected to cost around $1.1 billion. Commencing production in 4Q 2012, Jubilee is flowing at a gross rate of 70,000 bopd. The Jubilee field, located on two licenses, Deepwater Tano and West Cape Three Points, is situated in a water depth of 3,609 feet (1,100 meters).
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