You're obviously very new here, so probably worth spending quite a few hours of your employer's time reading the TPT threads over the past 2 weeks. In there, apart from hearing from some pretty disenchanted punters, you'll get a sense that costs may have exceeded Galp's pre-drill revised cost of US$73m (released to mkt 3 June). This has surprised all of us (if indeed this is the case) as we all understood the well was drilled 5-10 days within time budget and trouble-free so most of us were expecting there to be some change and possibly $12-20m left to continue the cause.
But DW's suspension of trading (and a possible hint to a select few) suggests that there is at least material uncertainty if not legal dispute as to the final cost estimates. The stated suspension for at least a month also strongly suggests this is not a simple matter and considerable time is likely to be required to resolve this matter (hopefully). Background reading of Neon's (NEN) recent issues with cost blowouts in Vietnam is recommended if you want to get a better sense of the issues.
But I'm sure DW wouldn't mind you presenting/broking any offer (from big or small); in fact...I'm sure there'd be a good commission in it for you. Go hard!
Cheers
TPT Price at posting:
3.8¢ Sentiment: None Disclosure: Held
