Hopefully a green day today, page-35

....Lets face it the development will cost somewhere round $16b to $20b

HKP.

Nope this is an oilfield, not GLNG, APLNG or Browse or Mozambique's multi-TCF gasfields.

The gross costs are:

- Pre-feed: US300mil,
- Capex: US5.57b,
- Opex: US1.25b.
Total: USD7.12bil (100% basis) apply 15% to this as net share applicable to FAR

(Pls refer Cairn's 2015 CMD & Feb'16 slideshow rather then Backstreet Boys jingles & tweets).

Other Dev costs from nearby producing fields projects r as below:

1) KOS's: JUA cost US4.3bil over 2 phases + 754mil for the FPSO purchase (waiting on the MTA integration to this project so that 2 additional sands out of 5-6 can b drained of their juice in due course).

2) TUL's TEN: tad under US5bil (wont bore u to the exact decimal of US4.95bil)

3) ENI's Sankofa: Phase-1: US4bil, Ph-2: 3.6bil. Total dev costs: US7.6bil

4) Ching: (ignore this l'il crap) from 25Feb'06 & many happy returns of the day on its 10th anniversary US750mil

The first 3 r in Ghana, last one still trickling in 5k bopd is located in Mauritania, operated by Petronas.

Basically what Tina Fey's lookalike was harping on in the Q&A is that they need to know how much oil is there from actual flow tests, interference testing, sand continuity picked on the 3Dseis, etc etc. Give me abreak.

Most of this was already covered by Dicky Heaton in the CMD & subsequent preso's by Cairn to analysts. So the only thing new is the RISC volumetrics, new 3Dseis, SNE2/3 drill results.

March'16 & May'16 is when Cairn will do their chitchat about the year gone by etc, which also coincides with the Mlbn mining club talk. Cant b bothered attending unless they'd bother telling the ASX abt net pay intersected at SNE-2, SNE3 & the DST intervals.

Rest is all same old, same old crap to the Initiated (ie: A fisherman spots other fisherman from aFAR said G/Gekko or something like that) but this will b news to the Backstreet boys & Jungle Patrol on twitter !!  

gotta go, its time for Bud or that taptap test ;-)

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OFL,

Simmo was there for the shake & bake as he should, ie 'this is what we found & this is what we'd like to do y'r Excellency' which kinda explains the extension to the Tenure.

Post DoC, they need to lodge a plan of Dev (PoD) for SNE. But as there r other leads/prospects that need 2b drilled in the nxt 3 yrs (feb'19) so all will b done in parallel. Steps for that r as follows,

- engage someone to prepare a pre-FEED plan (ie location of producers & injectors via laterals IMHO)
- then 'lock it in' after apprvl by the locals for the FEED,
- do an FID &
- then hire multiple rigs,
- find an FPSO/convert a SuezMax to an FPSO in a yard in Korea, Japan or Singapore etc etc.
- drill numerous wells &
- then get to first oil in a few years time from today.

Afterall it is a tried & tested formula in that part of WAfrica. More keen on what KOS unfurl at Teranga, bugger that's in Timis's block in Senegal (P50-500 mmbbls they reckon).
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Meanwhile in the Atlantic, whilst ORA was still at SNE-3,

- TEN's FPSO was approaching Angola & seems 2b on track for March arrival at TEN.
- Anadarko drilling their Paon-5A well,
- ENI busy as hell at Sankofa,
- Cajun still at Baobab,
- Achiever at Any-2 &
- Berge Helene FPSO still at Chingching (happy 10th pity no one at HDR gives a frogs*)  

That's the way it is, swingby nxt week...