Cosmo: I agree! For Q the best outcome for PS3 will surely be gas and condensate either equal to or exceeding pre-drill estimates as they are in the dom-gas supply business and that's what they want. Dorado oil (subject to volumetrics) should pay for the gas development with plenty besides. Hartley's were telling us a while ago that the condensate estimate alone would pay for the development. For CVN, more oil found in PS3 below a gas/oil contact point would be nice. However, as a junior non operator partner in the JV, and also the owner of the rights to separately sell our share of the gas, I believe that CVN should and will, stick with the development. Again subject to both the Dorado oil find volumetrics and the volumetrics of PS3.
Should they need to find money for Dorado development from within the portfolio, then subject to Dorado volumetrics being commercially attractive, my view would be that consideration should be given to offloading Buffalo. Left field to common thinking I know, but worth consideration in the event they cannot or feel that they should not impose further CR's or burden the company with excessive debt.This company has an excellent future if the cards fall the right way and the big boys don't try and take them out. Cheers. IMO and DYOR.
CVN Price at posting:
62.0¢ Sentiment: Hold Disclosure: Held
(20min delay)