Cosmo,
I thought they already said that they wouldn’t need to flow test, but if they needed to flow test it would be because of reservoir doubts, not fluid doubts. Fluids are very predictably modelled.
As for the boe roughly 10 + 3 = 13 kboe/day.
I don’t favour selling Buffalo, at least until after B-10, when all going well we will get a much better price, and might be able to selldown enough for a big contribution towards our Dorado capex.
Meanwhile though imho we are likely to need a small CR to fund follow up E&A wells. Maybe something like another 100 mm shares, and perhaps even our last CR. I don’t think they can do a rights issue as existing holders are more likely inclined to taking money off the table not putting it on. Personally my CVN holding dwarfs any of my others now, and if I wasn’t so enthusiastic it would be scaring me into reducing.
I still expect CVN to call a meeting prior to the AGM to approve the last issue, so that they can do another CR. If not then approval at the AGM for an immediate CR.
Given what it would be used on very compelling E&A we should actually be enthusiastic about a CR. Better than getting firesale prices for Buffalo prior to B-10.
EL
CVN Price at posting:
62.0¢ Sentiment: Buy Disclosure: Held
(20min delay)