The fashion in which the PreFEED result(more work on the...

The fashion in which the PreFEED result(more work on the pipeline route and on the siting 0f the LNG plant to come )was delivered wasnt likely to excite a market looking for instant satisfaction
No problems ,whatsoever,for me there. Note HZNs comment about increased recent institutional interest in the company-thats what we should want as such investors are looking to the main game- HZN becoming an LNG manufacturer with its own quality gas fields and all the trimmings that go with the title "manufacturer"( stable,solid earnings that leave oil and gas exploration and production tiddlers on the roadside as far as they are concerned). Just the title "Substantial Manufacturer" has a ring to it that smallish O and G Explorers and Producers have difficulty in attaining (even with a Beibu or 2).
If WLNG progress wont be spectacular in the next month or 3 that wont be the case with Beibu and Maari earnings.Even with a slightly lower POO as we have plenty of hedging in place at reasonable levels ( a bit too much,maybe,but see below).
B and M (Beibu and Maari) production that we become entitled to is almost certainly going to go from a figure like 5000 bopd to a figure like 8000 in a cakewalk in the next 6 months.
Built into this growth expectation are a host of factors,many of which are already virtually enshrined in concrete. Weve got;
# the extra 16% entitlement re Maari oil(from 1 January),provided the final approval is received to the Todd purchase,
# the 2 infill Beibu Phase 1 wells that were scheduled to be producing by now,but look as if they will be by April.These 2 are gimmes for good results.
In addition there are factors with a high prospect of successfully further upping production,such as;
*another makeover/makeovers at Maari
* Possible yet more makeovers at Beibu (Phase 1) as part of a virtually continuous makeover of sandstone wells that didnt end on 31 December last.
Looking out beyond 8000 bopd we have the long awaited Phase 2 drilling at Beibu awaiting govt. approval .It shouldnt be long before BP2 gets into action.
Overall HZN has a raft of drilling that will up our production to 10,000 bopd,for sure.Thanks to very solid cash flow expectations there is no shortage of funds for drilling and lots of drilling already approved ,or tacitly approved ,by HZN.
Institutions favouring our LNG prospects wont fail to have noticed the increasing cash flow from our oil revenue-the clincher for actually making an investment in HZN,IMO. "Belt and Braces"- thats what institutional investors look for .