I have done similar Katok (but without ire) highlighting where I think the plot got lost and what would need to occur to rectify it.
Of course my assumption is the Halifax is still a good well and the sky has not fallen (there was a reason it flowed at 4.2Mmcfpd).
Invertedva, sorry to hear you are out. No doubt (IMO) that the Put option gets exercised now. Your point on CVX with BPT in PEL218 is interesting (and the Holdfast-2H results could force that issue too) but I would offer the contra view.
CVX paid BPT more (in $/acre as the metric) for PEL218 than ATP855P because it is as you say lower risk - more wells have been drilled, there is a contingent resource.
However the announcement on Friday confirms the forward plan for ATP855P with 2 wells being drilled concurrently in Jun/Jul.
CVX determined the value prior to Halifax-1 results. For a while (flowing at 4.2) it looked like they got a steal. Now at 1.8 (but how did it get here) it may not be so? Depends I guess. With 3 more wells drilled and an extended testing period from Sep'12 that valuation can shift dramatically (up or down - as it remains speculative so risk accordingly).
IMO CVX is looking at the bigger picture and its more than PEL 218. IMO its also more than PEL218 + ATP855P but they is a long horizon view.
GLTA
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