Third well was downdip, but well into the reservoir sands. The flow of 0.00085 MMscf/d is a total failure for an offshore well. Even downdip, this should have been over 5 MMscf/d. In the best sands updip, Conoco would expect 25 to 35 MMscf/d.
As predicted, the sands are gas bearing, but at this depth, the Plover sandstones are too tight. A technical discovery as they apparently now have gas to surface, but with undeliverable hydrocarbons.
I would doubt that Conoco will throw good money after bad and drill once more, but you never know!
I value KAR at the cash in the bank, less immediate commitments divided by the number of shares on issue.
The other exploration acreage is interewsting but at this stage has no value, only liabilities: $195M - $70M = $125M, divided by ~180M shares. About 70 cents a share.
Plenty of downside on this stock, but I suppose the crew will keep talking her up!
valuation , page-12
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Last
$1.44 |
Change
-0.045(3.03%) |
Mkt cap ! $1.122B | |||
| Open | High | Low | Value | Volume |
| $1.48 | $1.48 | $1.44 | $7.950M | 5.468M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 16364 | $1.44 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.45 | 6448 | 2 |
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| Last trade - 16.10pm 18/10/2024 (20 minute delay) ? |
| KAR (ASX) Chart |