RE: Clarity2 Dec 2019 19:45
WWN,
"My view, for what it’s worth, is that it was negative and that the market response was appropriate. "
In some ways, I consider this as 'post of the day', although instead of 'appropriate', maybe 'understandable' would have been a better word. Because the market has reacted in a knee-jerk way, because the RNS comes across as rather negative, especially to non-oilfield people, in other words about 95% or more (a guess) of investors.
" I think the company could certainly have been clearer on their interpretation. Rather than simply offering numbers, they could guide their shareholders better. "
Agree entirely.
But also, in their technical explanations of the DST, for the few that may understand. Which wouldn't be a question of 'interpretation', but simple 'explanation'. Which for sure would go over most peoples' heads, but not everyone's.
Reading between the lines, Warwick West has been a significantly good appraisal. But yet again, there have been screw-ups. No pointing of fingers, but between Petrofac, Transocean and Schlumberger, (so also HUR and Spirit) this drilling campaign seems to have been poorly executed in operational terms. The obvious outstanding success of Lincoln Crestal notwithstanding.
Today's RNS 'explaining' the DST results on WW don't explain anything at all. In fact, they confuse. And because of that, 'the market' has reacted in an understandable way, despite the dismay that may have caused to some shareolders.
As a 'techie' I can completely understand the 'plug and abandon' reasoning. And the resultant negative market response, even though I have a very strong suspicion that P&A might have been part of the plan and permitting all along from the get-go.
But the 'technical explanations' in the first part of the RNS are technically wishy-washy. OK, if the f****n' ESP failed to restart, or the electrical feed cable got broken, why not just tell us? That sort of mishap is quite forgivable, instantly. S*** happens. But'well still cleaning up with the ESP not operable so just natural flow' (paraphrase on my part) just doesn't cut the cake.
For me, this is not a 'negative. RNS, but at least regarding the WW reporting, a disappointing one. Because as WhichWayNow says, lack of clarity.
This was, and still is, an 'oilman's share'. But the company should stop treating everyone as a bunch of ignoramuses. Sure, Dr T's got some grudges against BP and the like, and with whom he's 'given up arguing', but that's no reason to keep eveyrone else in the dark.
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