Which way forward and how quickly is the current contensious issue. Surely the legals have some bearing on current basis as to the restrictions that they have placed in the debt raising arena.
Verts vs Hories. Good question, hories are very profitable if they hit the right spot but are very expensive to initiate into production stage where you have costs of drilling, fraccing, infrastructure etc.
On the other hand you can get 2 verts for the price of 1 horie. Is it feasible to say put in 4 or six verts initially first to boost the revenue base so that you can then fully fund a horie program.?
On the other hand you can do a lot more cheap farmins as per the EFS Cutlass project in a very established area and others. We all would like to see quick production with good results to maximise revenue for future self funding but at what cost.?
Personally I would like to see the 4 PB wells at full production rate and see if #1 and #2 are really the wells that they are supposed to be and spruiked about when announced. The test well tags need to come off them as its been long enough and need to do the talking. Would be very disappointed after the the mucking around with the so called testing program and it did not produce anywhere need the figures they supplied to market.
#1 initially 379/day and #2 was quoted as equal or better than #1. Big statements to live up to and reproduce after this testing bizzo. Action is needed soon and will they be fracced end of October or soon beyond.
The other thing too if verts were done they can always be revisited later as workovers I believe. Been spruiked we have a 3fold interval play to choose from and all are candidates in their own rights for a hori program so they have told us.
As good as it all sounds, 2 factors stand out, time and costings till 100% self funding. There is no doubt that this can be achieved but at what cost in dilution compared to production rates from each well.
GGP Price at posting:
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