buyholdsell ... OBL has at least four assets, none of which have any synergy with the others. I guess when they started out they took what they could and time will tell which bits prove to be valuable. The Vic acreage has no capex obligations and the offshore WA acreage is all about getting Apache (or someone else) to buy it ... Apache needs to buy it because there is a discovery in their acreage and it extends over the boundary so OBL could potentially suck it dry. And then there is their Canning acreage ... the Backreef block came up dry so far but could still have other targets in due course. And then there is the Derby block ... this is the one with huge potential value ... very likely (indeed, almost certain, given the interest from Buru and FMG) that it has the same Laurel wet gas formation that Buru has intersected at Yulleroo and further east at Valhalla ... and if OBL is lucky they will also interest a basin-centred-wet-gas formation just like Buru, and if they are really lucky they will find areas which have conventional porosity (i.e.. will flow freely and won't need fracking). Also very relevantly for the Canning, OBL is on the western edge, with good roads and other services (incl people) all nearby ... so their drilling costs are much reduced ... compared to Buru and especially NSE which are often tens and in many cases hundred of km from the nearest public road. Which all means that OBL, now that it has Buru owning half of the block, and FMG carrying it to get another 1/4, is sitting very pretty indeed.
OBL Price at posting:
3.9¢ Sentiment: None Disclosure: Not Held
