The plan for Tunisia remains unchanged. We always planned to commence the divestment after the results of Hammamet West-3 were known. The results to date have been very encouraging in that the horizontal section has intersected fractures and we’ve had numerous gas and oil shows. At present, we are preparing to do a production test;
this is being done earlier than we’d previously planned in that we haven’t yet reached the primary target – but in view of the hydrocarbon shows and fractures we have encountered, it made sense to proceed to production testing now.
The Tunisia portfolio, of which the Bargou Permit is one of three permits, is a valuable portfolio and already the results from Hammamet West-3 are supporting our view of the value of the asset. Clearly, a successful production test, which means sustainable hydrocarbon flow, would further reinforce our view on value, but our plan to divest will remain unchanged.
IMO if they can maintain well integrity and the well bore doesn't implode or do anything nasty then HW3 is going to be a ripper. and we didn't reach the 'primary target'!!!
JKA Price at posting:
12.2¢ Sentiment: Buy Disclosure: Held
