Hibernation5 Jun 2017 14:41
In a nutshell this is BORs Issue:-
'Through facilities engineering studies and reservoir modelling we demonstrated that the break-even oil price for an initial
270 million barrel FPSO phased Darwin development would be $40 per barrel.
If the 25% contingency included within the estimated $1.36 billion capex is reduced,
through more detailed engineering work, the break-even oil price would be appreciably lower.
With oil possibly rooted at $40-50 per barrel for years, who is going to invest upwards of a billion for something in the region of a fiver
a dollar/barrel profit.IMHO BOR need to find a way of getting to around 20-25 dollars a barrel to attract the investment they want.
Personally I think they should just drill Sullivan by any means necessary, a bit like Providence bit the bullet on Druid and HUR did in their recent campaign.
Dilute, consolidate if necessary, just get the drill bit turning whilst rates are low and value will out.
Hibernation does no one any favours...