Cheers for that wilto.Very interesting stuff. Returns between...

Cheers for that wilto.

Very interesting stuff. Returns between 7%-20% and average field size is approx 5.6mmbo of reserves (of the 106 fields yet to be developed).

Whilst I know that ROC cannot book the reserves, IMO, its interesting to know that with their 48% share of the 4 fields, would be around 10.75mmbo. Quite an impressive amount (if eventually developed) considering the amount of funding they have put in so far, about $6-7 per barrel (it states reserves in the document).

If you look at the footnotes, the first article, Oil and Gas Week, 'Deep blue sea, mentions that:

"As the oil remains the property of Petronas, the contractors cannot count the reserves on their books, something that would ordinarily dissuade investment from an international oil company driven by the need to book reserves. However, for a services company free from the need to build a healthy crude balance sheet, this is of no consequence."

Yet ROC decided to go ahead anywhere, I am assuming that it was not just for the economic reasons, but the credibility of proving they are a great operator that will in turn, hopefully allow them to J/V with other, more profitable projects in the future? (which cannot be valued yet, but hopefully will prove a wise move).

Pretty surprising that there are so many fields undeveloped.