As long as our seismic shows a few areas of interest/drill prospects (which we have been led to believe we have in recent announcements, mention of avo-3, etc), then it is highly unlikely wds will pullout of their option - the optics will just look ridiculous for the company. From a business perspective, the risk/reward is just too good - 100m-300m to throw a drill down, to potentially hit a resource worth billions. No brainer, and worth the risk.
Combined with the current drilling, Galp and mopane, Chevron, Rhino, Azule, total - the risk has been drastically reduced in the basin. Refer to Sintanas most recent Jan 2025 Presentation, it’s a circa 85% cos rate currently. Which is better than I’ve personally ever seen in my lifetime for a resource.
Wds got lucky (or had tremendous foresight) to take the risk so early to get exposure to pel87 so cheap (before any of this success)- they are sitting on a golden ticket, and now have a timeframe deadline in place to redeem it. It really hinges on how convincing the seismic analysis looks…. They would not still be here if there was nothing of interest (imo)- it would be nonsensical. Patience.
PCL Price at posting:
1.9¢ Sentiment: Buy Disclosure: Held
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