where to tui ?

Just posted the main details of this post over on the NZO forum which has seen its share price hit more heavily than PPP by the TUI downgrade.
But the details here are very relevant to PPP I think.

It is worth having a look at what else was in the AWE announcement that hasn't got a lot of coverage.

At the end of the announcement Bruce Clement (Managing Director of AWE) had several paragraphs of comment to make.
In one of those he noted :
"?In the near term, the impact on AWE?s production and profitability is forecast to be small. The Tui fields are currently producing on budget at approximately 7,800 barrels of oil per day gross."

Now the same could be said of PPP ....in the near term!Especially with Tui oil at over $100 per barrel.

The other thing that he said (perhaps was bound to say) was this:
"?The Company remains focused on fully exploiting the Tui oil fields, with significant technical work ongoing, including evaluation of the opportunities identified for near field exploration and infill drilling.?"

So the potential is still there for fresh additions to the reserves that could in fact be better additions than the amount discounted recently.
Okay El (will save you the trouble), potential is not actual reseves or actual oil and until it happens the amount of oil at TUI is still downgraded.

But it is not all doom and gloom. This is just 2011. The full impact of the downgrade will not show in production decline for a few years yet. Time enough to identify a new target or two and have it drilled and producing (if successful) and production boosted.
Ever optimistic.