RE: Also LOL…28 Feb 2023 09:19
Have to disagree with you MGS. Azerbaijan 'the largest oilfield in the country' comprised 3 large separate fields, each with different geology with some regions remained completely unexplored. It was considered very low risk, but also low initial reward with the purpose of re-entering some of the hundreds of either non producing or low producing wells of 2,3,4 barrels a day to clean them up and improve production by a small amount to 5,6 7 or better if possible. The across the field multiplied across hundred of wells was intended to be a relatively slow burn, steady incremental improvement of production from the initial 350 or so barrels a day to a target of just 1000bbls a day over a fairy long period of 12-18months. The cost of re-entry for each well was low due o the 'borrowing' of a small workover rig and lowly paid workers. This was then expanded to 2 and 3 crews later on. The big 'risk' was to drill a new well which was conditional on the license, not the field rehabilitation, and based on their being 3 x very large, entirely different areas to work on, it was certainly not as you keep saying all eggs in one basket. Hundreds of little baskets, already drilled wells to clean up, repair or reperforate across thousands of acres. If anyone wants to read up on it just look at the IPO prospectus and 'sales brochure' from that time. The low-risk aspect was the reason why many PI's invested at the time- I met with many of them and none that I met believed that their investment was high risk/reward. One guy I met had invested around 250k at 13p, he was a Mr ordinary worker, had saved all his life and wanted to make 10-30% over 1-2 years. Not high risk high reward and if you had been around and listened to Andy cat, you would have heard the narrative at the time.
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