Yeah I think the 3P ground of BOW is effectively worthless now. That's why it's 2P that counts. In the old days pre-2009, you could safely trust that a big chunk of 3P would eventually be upgraded to 2P, but not any more.
2P requires them to have either pilot or production data nearby which demonstrates commercial rates. They also need a market but with Meridian already hooked up I don't think the GSA will play as big a role in getting a 2P upgrade as it would if Meridian had no production at all. Especially with the LNG plants nearby - I don't think they would have too much trouble convincing a certifier that they have the commerciality options for 2P even before the GSA is signed.
So the main problem for WCL will be proving economic flow rates. Also after the MPO fiasco, the certifiers will probably be more reticent about giving 2P on the basis of short production tests (which is how MPO would have got their 2P in the first place).
WCL Price at posting:
28.0¢ Sentiment: None Disclosure: Not Held
