old hc back, page-21

Cmonaussie - firstly let me say I continue to find your posts on various threads very well researched and you offer some great insights so well done !! I also agree that the company will exercise its put option- and this will provide short term funding but if doesn't go that far IMO . There is testing , horizontal wells, corporate overheads etc. The drop off rates not only on this well but BPTs other wells seem to have been large so my guess is the concept of vertical wells may be harder to justify - horizontal wells will be more expensive.
It's not the end for ICN , but I do believe the news increases risk for ICN. I also doubt BPT would farmdown a significant percentage to Chevron only to spend the equiv to buy back the percentage from ICN. In my opinion ( and just an opinion) BPT farmed down as they quickly understood developing the asset would cost a lot of money and the risk that it would not be developed was still existent. I agree that if the shale assets are commercially developed then ICN offers great value , but a prudent investor must discount ICN today as the whole story is concentrated on one asset. ICN may indeed offer the best upside in shale ,but it probably offers the greatest downside also - therefore from a risk /reward perspective I don't see a compelling value story , especially after this news