"So what has happened? IMO we are a little overextended (like buying a new house before selling the first and coupling that to the new house is twice as big (more acres) and the missus has expensive taste (Hz wells) in furniture)."
I agree we are over extended but I believe as stated in my previous post that SG knows or is expecting costs to date will be returned for drilling, expenses accrued by testing and the resulting hold up in income and these wells will end up being free carried.
This of course can only happen if there is a JV. but I very much doubt SG would put us in a tight cash position and a JV in the EFS if JV talks hadnt proceeded to a stage where he felt comfortable to do this.
there was always the easy option and follow the original plan but it would have been done at the expense of future gains.
Another clue to the slowing down of getting flows out of our first two wells is that SRH 2 was to be fracced back to back with SRH 4, that wasnt done and its now to be fracced back to back with SRH 1 and no date was given for a start on that.
These things are happening for a reason ( other than frac crew delays)and I feel the terms of any JV arangement are dictating how things are moving at the moment and as per last Permian update they were well advanced
Cheers Whisky
GGP Price at posting:
1.9¢ Sentiment: Hold Disclosure: Held
