Stinky mate. You need to stop, take a deep breath, and read. It’s all there in the announcements. I don’t mean to sound like an asshole here - but if you’ve really gone all-in on IVZ you should probably wrap your head around what you’ve bought!
IVZ don’t own SG 4571 directly. Geo Associates own 100% of SG 4571 and IVZ own 80% of Geo Associates.
SG 4571 is being expanded to 709,300 hectares.
This means that Geo Associates own 100% of the licence for the 709,300 hectares. IVZ owns 80% of Geo Associates, so IVZ own an 80% beneficial interest in the expanded licence area.
The vast majority of the new area is currently entirely unprospective. This is not a bad thing per se - it’s just a fact. There are however two reasons to like the expansion:
- First, some of the new licence area is prospective. In particular - some of the seismic work was done outside of the original license area. That small area is prospective and has now been included in the licence. This is likely where the second well will be drilled.
- Second, it gives IVZ (or rather, Geo Associates) first mover advantage for further exploration over the rest of the new licence area. At this point in time there’s no data to suggest that any of the rest of the new licence area is prospective, BUT it’s now locked away for exploration so other companies can’t get to it. So if there is anything there to find Geo Associates has the only right to it.
