Auto' I'm interested in your valuation of the Balai Cluster service contract's upside worth to Roc's bottom line. You commented... "Mind you we also had another discovery in Malaysia making buying back even more enticing" Auto in reference to Spaoh-2 appraisal well, which extended the Spaoh field yes, but I'm thinking the role of BCP [ROC 48%] is basically only as a paid contractor of the Malaysian gov't? Am I somewhere near the mark with my memory as I have not held ROC for several months and am thinking there was also a monetary incentive of sorts for the contractors, BCP, involving some sort of % bonus for development and appraisal success and possibly for keeping development costs down?
22 March 2013 ASX RELEASE DRILLING ACTIVITY UPDATE (SPAOH-2) BALAI CLUSTER APPRAISAL DRILLING ROC advises that BC Petroleum Sdn Bhd (BCP), the company incorporated to operate and manage the Balai Cluster Risk Service Contract (RSC) in Malaysia, has drilled the Spaoh-2 well to a total depth (TD) of 3,001 metres TVDss. Spaoh-2 is the third well in the pre-development drilling phase and is located in the Balai Cluster, offshore Eastern Malaysia. The well reached its current TD at 17.00 hours (Malaysian time) on 6 March 2013. Initial assessment based on preliminary logging results indicates estimated net hydrocarbon pay of approximately 30 metres across six sandstone reservoir intervals. The Spaoh-2 pre-development well intersected reservoirs approximately 200m downdip from Spaoh-1 and confirms the eastern extent of hydrocarbons in the Spaoh field. Spaoh-2 has been cased and completed in preparation for extended well testing with the Early Production Vessel (EPV) Balai Mutiara. The rig is currently preparing to move to the West Acis field, located approximately five kilometres north-west of Spaoh, to drill the West Acis-2 well. The Balai Cluster RSC consists of four fields: Balai, Bentara, West Acis and Spaoh. The pre-development drilling phase commenced in 2012 and is expected to be completed mid-2013. On successful completion of the pre-development phase and agreement on the economic viability of the fields, BCP will submit a field development plan and progress to development of the fields. Shareholders of BCP are ROC (48%), Dialog Group (32%) and PETRONAS Carigali (20%). Alan Linn Executive Director & Chief Executive Officer
ROC Price at posting:
46.5¢ Sentiment: None Disclosure: Not Held
