R15, Brent oil price today is US$110.84 and the Gas price...

R15, Brent oil price today is US$110.84 and the Gas price US$4.505 which means on current production we are set for a profit this year imo. The gas price is most interesting as it will mean several of the prospects identified back in 2010 will now be worthwhile and my guess is where some attention will be focussed on the seismic by the geo's. There were 13 targets in 2010 selected from about 60 candidates.

If you have a look at Desiree scout reports we can see a milling window was put on this well which means possibilities for further development from the same pad. Louise is a different permit so the window most likely not for that but possibly the other sands identified in the initial drilling.

Also add the comments in the Biloxi announcement and the nearby leasing activity and an alternative view becomes possible. Until the leaseholder clarity is confirmed I doubt we will be drilling but Louise is no big deal in the overall scheme of things, even if spudded today it will take a few months so will not add to FY2014 income.

Any improvement in the overall O&G sector sentiment may lift several coy's so part of our current challenge imo is not picking one winner but identifying several and waiting for the sector to improve. Many have had good results but to date little sp appreciation therefore it is worthwhile considering alternative views that not all mgt are fools, most have a plan and are equally frustrated at their SP performance. Those without cash, income or high admin costs have been punished the most.

Meanwhile people can make up their own mind. There is plenty happening albeit not directly related to GGE however it all adds to a bigger picture developing in the GOM that all may find useful in understanding their investment here.

keep up the good work
All opinion only
Cheers