I doubt that FARJOY is keen to voice opinions and or publicly...

I doubt that FARJOY is keen to voice opinions and or publicly announce his views again, as we know it is a double edged sword (just check out the knifes coming out in past days against those who voice positive or constructive opinions). His actions speak louder than his words and he has continued to partake in raising's at every opportunity.

Remember that FARJOY is not a trader and has a longterm view, so for him no henny penny 'skyfalling' moments given recent events. Patience is required and IMHO will be rewarded.

My personal thoughts are that I would assume that FARJOY is delighted around the results and in particular the reduced operating costs going forth given the above expectation successful flow testing as I commented recently on the thread. Given his parting comments in the "FARJOY" letters that as the largest holder he was now focused on how we raise the monies to take the company to production - this IMHO has just become a lot easier. The bolding I have added to my original post and IMHO this is the guts of our recent ANN;


A good result at up to 8,000 and we hit beyond 10,000!!!
(As the equipment couldn't handle beyond the 10K) ) - pointing to the rarity of such pressures.

If reservoir pressure, porosity etc is continuous (i.e the field will produce at the same rate wherever the wells are drilled), the expected costs of production will be much lower smile emoticon

The announcement suggests that pressure, porosity etc is continuous:
- "SNE-2 has confirmed the correlation of the principal reservoir units between SNE-1 and SNE-2 and the potential for lateral reservoir continuity.!!!"

To achieve a commercial oil field at least 50,000 barrels a day should be produced, preferably peaking at 100,000 barrels per day

- Cairn has modelled production costs for a commercial field using up to 30 subsea wells to achieve that flow.
Commerciality can now be achieved with 5 wells, and peak flows with 10 wells!!!

That implies a much lower cost of capital and lower operating costs - or a higher production field.

A good comparison can be made with a leading subsea oilfield off Malaysia, which required 20 subsea wells to achieve 100,000 barrels per day (implying an average flow rate of 5000 bpd).

(This field had reserves of about 400 million barrels but SNE is expected to book reserves of ~700 million barrels).

Development / Cost Analogues; Gumusut-Kakap, Malaysia Gumusut field was discovered in Malaysia’s deepwater Block J in December 2003
Discovery well drilled in ~ 1,000m of water,
6 subsequent appraisal wells (including side tracks) followed
STOIIP ~ 1 bn bbls
Reservoir depth 2,800-3,200 m TVD, Reserves ~ 410 mmbbls of
38o API light oil
Production commenced in Nov 2012 using an interim evacuation solution to the Kikeh FPSO
Produced gas is re-injected into the gas-cap to improve oil recovery and help maintain reservoir pressure
Full field facilities (leased FPS) commissioned in 2013 / 2014 and peak production (> 100,000 bopd) expected 2015
Total wells ~ 20
Main development challenge – delay in construction of Sabah Oil and Gas terminal


(I am going to try and reduce my appearance on HC for the moment, I was reminded this morning that I am meant to be on holiday and spending time with my family. Enjoy and DYOR. Enjoy the peace )