We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
PoC
It could be gas on the basis that you never know for sure until you drill. But all the nearby fields with the same reservoir are oil, so highly unlikely.
I would have thought oil or gas was ADV's first question when they considered the opportunity and obviously rejected the gas possibility.
Pageofcups which is denser oil or gas
Is this attic definitely oil? What if it's gas?
Light oil tends to have gas cap at the high. Have they identified fluid type from the 3D?
Very difficult to image this prospect due to the geology.
Carnarvon are also valued at $563m, they've shot up recently. Despite that valuation they see Buffalo-10 as transformational for them and here we are sat at £40m.
That's a fair point and one that has been discussed on here PoC.
In a nutshell they've got a lot of work to fund.
On the JV with us:
'Carnarvon's strategic objective has been to drill the Buffalo-10 well while carefully managing its balance sheet. This transaction enables Carnarvon to progress its portfolio with conviction, which includes the Dorado oil development, the Buffalo oil redevelopment and pursuing a number of high impact exploration wells near the Dorado field.'
https://www.marketscreener.com/quote/stock/CARNARVON-PETROLEUM-LIMIT-6496252/news/Carnarvon-Petroleum-Buffalo-Farmout-and-Redevelopment-32030468/
Anyone know why Carnarvan valued at $330M didn't fund Buffalo themselves if it's so good?
I took it that LP was telling us to buy shares!
1. Almost improbable that the development won't go ahead.
2. They confirmed funding would be available to develop before they closed the Buffalo deal.
With those words the 85% probability of development would seem to risen to at least 90% using the calculations contained within the CPR.
Thanks guys!
Plus there was a boundary dispute between Australia and East Timor which deterred any interest for a few years and took a few years to get sorted. Plus the seismic 20 years ago wasn’t as accurate to delineate the attic. In essence the above aspects plus the oil price drop in the early 2000 offered this incredible opportunity and we got the deal across the line although apparently there were also other parties interested. I think that CVN’s main projects meant that they had no financial means to commit also to work on Buffalo whereby us funding the drill etc just worked perfectly for all parties. 2 weeks or so to spud, might have to buy more.
*hasn't*
If buffalo stopped producing in 2004.. And everything looked so promising why wasn't any other oil major or such been interested since?