JOG isn't Cambo5 May 2023 20:36
Cambo is 1000m below the NS in a remote location. It's much more carbon intensive than Buchan, more complex and lots more to go wrong. Cambo was discovered 2002 so that tells you how easy it is to develop!
Buchan is 100m below surface, in CNS, surrounded by existing infrastructure that doesn't need to be built (no more CO2 in steel pipelines!). It's brownfield which keeps it below the radar of 'new developments', politically and loony greens-wise. It's also extremely well-understood geologically, and is an easy reservoir to extract from - once developments starts we can be almost sure they'll get good flow rates (at least the moderate flow rates that are planned; it's a midlife filed).
Buchan/ JOG is valued as a speculative play. Its resources are not technically reserves - but that giant gap is why it's an opportunity. It's a known-quantity - a great way to dodge EPL without risking a complex development.
May I say the following prayer of JOG:
Les/Benitz et al, grant me the serenity to accept the things I cannot change,
the courage to change the things I can,
and the wisdom to know the difference.
Don't get get up or stressed about the idiotic political views (politics of getting elected and governing are not the same!) and twitter feeds. I maintain on balance WFT helped JOG. Amongst the noise it's a scarce asset - economics no longer work for E&P in NS, neither do large complex developments - but JOG is the classic low-hanging fruit - low risk and of scale, and ESG positive . And any great investor talks about the management team and JOG has the best one going in the NS.
News to come soon!
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