The one thing that we HAVE NOT discussed is the possibility that the announcement of the "cost overruns" had already been negotiated.
Think this scenario through as well and see if it might be the possibility - everyone has done the maths already but take a step back and think about it.
1. Drilling started and announced BOP issues
2. Drilling at SNE 1 started whilst waiting for BOP issues to be fixed
3. Returned to FAN 1 and drilled into hydrates issues.
4. Announced delays of BOP and we got word of hydrates on the HC forum
4a - insert - did we find oil here in the "Thin Sands" and sample etc before drilling on
5. Announcement of "Cost Overuns" now everyone grabbed their calculator out and went absolutely nuts on working out the 15% commitment - several rang FAR and spoke with Pete and he confirmed that the cost overrun WAS $24Million - everyone said then that "hey this is impossible" and hey we only contribute 15%" and hey that means that the whole overrun is worth $198 Million.
Well HEY - Think about it now. We have been an extra 8 weeks or so, and at the rig rates per day the total cost is probably starting to get close.
Im only reading between the lines, BUT i CANNOT see how they could be legally incurring more costs and not advising anyone.
I read the posts, and I BELIEVE that the FAR has been very transparent in their announcements and they have already allowed for all of these costs in an "ESTIMATE" of cost overruns.
They are not doing this for the first time - and there have been shows and snippets all along the way that put credibility into the FACT that they have found more than what they were looking for.
We heard a whisper that they brought on board "EXPERTS" in the Hydrates issues to assist with the BOP issues and presumably the rebuild / replacement of parts on the BOP to enable them to drill through the Hydrates.
We now have an announcement that says that they have collected "OIL" and further testing is ongoing.
If we all believe in FAR as much as we have said, then BELIEVE that they have all the costs covered and they know how to manage this situation.
I am continuing to hold, they know FAR more than they have said to date.
When this announcement comes - HOLD onto your knickers and hats cos its going to be " TERRIFIC "
GLTA and - DO YOUR OWN RESEARCH
FAR Price at posting:
7.9¢ Sentiment: Hold Disclosure: Held
(20min delay)