I think a revival of the share price will come about with a revival of the oil price to say $50-$55 with the gas price moving in tndem. At that price the oil glut would have had to disappear and Canning basin would be 'in play' with prospective farm in partners.
Cambay and Bhandut gas production would of course also be more attractive and presumably finance would be more readily available for proper development.
With the present oil price Bhandut may prove to be a good bet for more wells - assuming there is enough gas left to exploit profitably. This is because Bhandut well completion and production costs would be much lower than Cambay as extensive fracking would not be necessary, and production facilities are already in place etc. The production proflie (over time) of the new Bhandut producer well, should indicate the viability of the producing zone in conjunction with the seismic data etc.
OEX Price at posting:
1.5¢ Sentiment: Hold Disclosure: Held
