Yes, I went.
Damon pretty impressive in delivery, though it was only a 15min presentation.
Pretty tight lipped on **on farm-out other than: 1) still in discussions 2) aiming for similar deal to Morocco and 3) hopefully done before drilling in Morocco in January.
The one important item I came away with is that the Madagascar seismic cost is not $15M as had been suggested recently somewhere. This is actually the maximum exposure under the JV terms, PVD has already done the tender for the seismic and it came in at US$9M. This seismic will be done in Jan 2015.
Given PVD had A$18.8M in the bank at the end of Sept - if you take out the cost of the seismic say A$10.5M, then they will still be in good position. Damon said they were clearly funded for 12 months (i.e. he crossed out any notion of a CR) and also would also gain from any cost recovery from a **on JV.
Drilling in Morrocco was variously stated as Jan 2015 or Jan/Feb 2015 depending on which slide you looked at. There is one well called Boilers-1 being drilled in the adjacent block to the east in 2015. Need to check timing of that. Two other Morrocan wells SM-1 (now drilling) and MIR Left (Q4 2014) may also have an influence on PVD between now and spud so should be watched..
The **on story very impressive. Exxon/Tullow immediately to the south. With Shell/Total/Petorbas in the neighbourhood and 3 major discoveries in the last 12 months as well as existing (smaller) fields to the north trending into the east side of the permit - its not hard to imagine good JV terms despite oil price slide.
I have been topping up with more PVD in the last few days, when I really don't need to top up.
Cheers
Gosouth
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