galoc proved reserves increase over 60 percent, page-10

Strat, pretty much as I thought. One wonders what the situation would be had Rubicon not acheived first oil in their other project, Bualang Field in Thailand. Rather short of funds one would think!

The fact that they have deleivered the goods in that project does raise the question of what the root cause of the problems is at Galoc. Was it simply weather or is it that it is more complex than Bualuang (which it is). Or is it symptomatic of the relationship between Rubicon and GPC? Probably a little of each.

It all highlights that offshore production is a risky business and every effort should be taken to mitigate these risks. After all, any of these potential failures has the ability to destroy shareholder value?

We can only wait and see what Nido's search for farminee's brings.