RE: Positive RNS, but what about VOBM17 Aug 2018 13:31
Squirrel, I think the death of Bobby Gray effectively put most things on hold (particularly anything that involved the need to write large cheques - such as the side track of VOBM#1). Consequently, in my view, nothing is likely to happen with the sidetrack at VOBM#1 until things are finalised with Vision, because to do the sidetrack before then would mean that Bobby Gray's estate would have to agree to fund Vision's share of costs (of about $1.1m, out of the budgeted total of $2.7m) - as Vision is now effectively controlled by Bobby Gray's estate. In addition, and ideally let's assume the merger with Vision has been finalised (although that is not a pre-requisite), I would guess that PANR would still want to do a farm-out of VOBM#1 to another partner - so as to get things (ie drilling) moving as quickly as possible and at the same time save some of its own cash. However, if a farm-out didn't happen quickly (ie in the next couple of months), then it would probably make sense for PANR to wait until revenues start to flow from the Tyler gas processing plant (ie in mid-October) before committing the funds for the VOBM#1 side-track. Personally, and given where we are, I would prefer the latter route as PANR would be able to keep 100% ownership of VOB#1 . It could be a different story if, however, the farm-in partner was also a very good operator. Either way a bit more patience for a few more months is still required.