Sally never mentioned they were about to make an announcement when I was talking to her late this afternoon. I hope it was nothing I said?
So they may drill deeper? As was reported on their first Eba #1 announcement the Stuart Range formation was at least 200m deeper than expected. Maybe everything has been deeper, and therefore the target zone is below the original total depth?
Good to see they have been getting some background gas. No gas no oil, so these are the signs we like to see. No guarantees but at least on the right track. Hard rock was to be expected, just harder than and more abrasive than they would have like for fast drilling. I would love to know how many bits they were chewing through.
The fact they are willing to extend TD, is a good sign, in that the indicators are good enough that they are willing to spend the extra money. The bad news is that it is going to cost extra money. The announcement is cheap, cost them nothing, the important thing will be that they commit to spending the extra and go deeper.
Still no news on the lab results from Pata #1 on the Stuart Range oil shows?
LNC Price at posting:
99.5¢ Sentiment: Hold Disclosure: Held
