CAn anyone offer any reason why someone would want to farm in to Fantuzza, with such a small amount of resources on offer?
remembering that this is a contingent (very risky assessment) of 53 million cubic meters, multiplied by .3 Euros and then 1.4 into aud gives a risky potential of 22.2 million aud. of course they have to drill deeper than sillaro so costs will be high there, then tie into Sillaro as well as take operating costs into consideration. All for gas which may or may not be there in the quantities specified and if they somewhere near the 1c estimate, there is not much profit and not a lot of longevity. The farm-out was stated as a priority in the next 12 months. If someone decided to farm in they would have to be looking at the 2C reserves and even then its a very risky chance at 110 mil times .3 times 1.4 = 46.2 mil Aud with operating costs to come out of it and then well back-fill and closeout (including environmental?). Just to highlight the risk again from the P1 P2 (in this case C1 C2) reserves "no petro-physical characterization could be undertaken due to the lack of specific data." The model used to get the C1 and C2 data is derived from the existing dynamic model which was wrong. Good luck holders and good luck PVE trying to farm Fantuzza out.
cheers
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CAn anyone offer any reason why someone would want to farm in to...
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