The best bit of news in todays letter to shareholders was the...

The best bit of news in todays letter to shareholders was the anticipated commitment to drill a second exploration well this year.

A second well this year is out of the question for SC58...NDO are required to carry PNOC-EC on the first drill as part of their original farmin agreement. SC58 requires a major to farmin.

SC54 is also out of the question for this year without a major farmin and first well carry.

It is possible that they could drill a second well in SC63...PNOC-EC's forward planning for the Aboabo drill included acquiring two sets of long lead items in case they wanted to drill a second well, and drilling costs in that part of SC63 should only run to a JU rig.
I always got the impression though that a second well would just target a different entry point on the Aboabo discovery, or at least a nearby target.

However, Byrne made a second well sound like a different entity, so from my point of view this second well would more than likely be in SC54A, probably targeting Laawan...a worthwhile drill and affordable on JU rates with the JV equities involved. Also, discovering oil there holds a very high probability.

The only snag here would be KIK's share of the funding, but they have indicated that the carried farmin they are negotiating on their share of SC54A should be completed this Q...if that goes through, a drill on Laawan later this year would be a distinct possibility.

Any other views on a second drilling target this year appreciated.