Thanks for posting that info guys........... It seems the Edison report figures are on the conservative side. I would go it alone with the info we have at hand, 90% cos is as good as it gets. Maybe that was JP's idea all along and he was just covering every eventuality. Things can change and we may have needed the cash elsewhere. Time will tell but its all getting very intriguing. Don't tell Bmd that JP is off to Italy, it will send him into a ramping frenzy with more takeover talk!!!!
Just emailed JP with a question re the second Nervesa well and the chances of water cut: He said the second well is the lower risk of the two with an in house COS of some 90% & because it is up-dip of the original ENI well they don't envisage any water ingress. I asked about Niche & he did meet them last week to discuss some issues Niche are facing & how the Nervesa farm-in could help off-set those issues. He is still reasonably relaxed as to whether the deal goes ahead or not - "there are arguments both ways" & "3.6 to 1 is a very strong carry arrangement" & that he hasn't seen any other sector deals at this level for a long time. Just caught him before he boarded his plane to..................Italy!
Crude.......anyway we fund it......Nervesa is looking good........& don't forget those 'hidden gems'......some of them are on the Carita License. That second well may well prove to be a 'hidden gem'!
IMO it is not a matter of Sound taking up the Niche offer, I don't think Niche can raise the cash to do the deal. The deal was originally supposed to be done by end of H1. They only had an agm in August about raising funds, if my memory serves me correctly. We should of at least had DD done by now. Also, there wasn't the usual bottom of the page mention of the proposed farm out in this morning's rns. Maybe I am reading too much into it though. I really feel we should and will get an update about this soon. Thanks, Joe.
If cos is 90%+ then I cant believe we won't go it alone. Nothing is certain but 90%+ is well worth the gamble. If cos is more like 75% then a farm out is sensible and with time getting ever closer to spud I expect the niche offer to be taken up. Why are the Edison cos figures lower than in house, is it a case of wishful thinking on the managements part.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.