Starting at the outskirts certainly shows confidence, others may call it somethig else. If this hole proves to be economic then i think the rational of starting drilling on the limits will have paid off, thats if you can then assume that the oil extends from this hole to the centre of the field.
However i think stepping out from a known economic hole makes more sence to me. Each time you are stepping out you have a high chance of hitting and inreasing the resource size.
However if you start at the outskirts you may drill ten holes before you hit economic reserves?
If the next few holes dont hit any thing of significance then there will be a lot of downward presure on the share price - like ANZ
CIG Price at posting:
0.0¢ Sentiment: None Disclosure: Held
