MudguyKEY was always going to drill Borsano well deep to target...

Mudguy

KEY was always going to drill Borsano well deep to target Oil. Drilling in Italy is timely, take a look at Po Valley Limited's progress. Good but slow in my opinion. If you asked me where I would spend some cash right now if it was up to me, I would have to say Tanzania; SSW or Nyuni. I would not waste my time thinking about drilling a well in the Po Valley if I were a KEY Director. If it happens, it happens, and I don’t think pushing it too hard will speed up the process significantly. Put yourself in their shoes and ask yourself what you would do if it were your decision. What would be best for shareholders and the company?

My opinion is that the cash would be better spent in Tanzania since it is my view that Tanzania, in particular the Mafia Basin, has been materially upgraded as a prospective hydrocarbon basin. Remember Songo Songo is the only significant producing field along the East African margin. If you are participating in blocks almost completely surrounding Songo Songo, which has to be worth something. These blocks would have some value you would think. That’s before you consider KEY's participation in a successful discovery that is in a separate structure to Songo Songo, next to Songo Songo, Kiliwani North 1.

I'm not a complete expert on O&G E&D&P, however, the fact that gas has now been found in a separate structure near Songo Songo suggests to me that some of the drillable targets in those blocks start to light up as firmer targets. The lower GWC in itself adds a large number of BCF's to the current de-risked, drillable prospects.

mmmm, down dip just got more exciting.

Marxist