Mike, we had a lot of discussion around this after the first drill results, because the rhetoric was already, at that stage, that the magic 200mbbl had been reached. Coming from a 'normal' commercial perspective, I was bemused that some Grand Clerk of the Brotherhood of Oilmen had to give the rubber stamp. Get on with it, ffs.
But I have subsequently been educated by the geos and commercial oil people. Firstly, in this climate, to approve a large (4b plus) capex, investors want all the risks ironed out. And secondly, reading between the lines, offshore Atlantic Africa has had a reputation for underperforming in Production, maybe because of rushing the Appraisal stage. So these guys want all the ducks in a row.
We need to be patient. COP would have pulled the pin months ago if they had any real doubts.
Cheers
FAR Price at posting:
8.3¢ Sentiment: Buy Disclosure: Held
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