The drill bit still turns.24 Nov 2020 11:50
There seems to be a lot of unease where this project is concerned. Just for clarity this is a ‘project’ and nothing is for certain. Look at the fact: there is strong evidence of a hydrocarbon feature within the licence area. Now that doesn’t convert into a financial positive until it’s out of the ground and someone is paying for it. There are so many uncertainties around the production of hydrocarbons and so many things can go wrong between discovery and profitability.
B1 found further evidence of hydrocarbons although what those are remains to be seen and how it fits into the hydrocarbon system within the licence area also remains to be seen. I’m sure geologists are all over the data like a schoolboy with a dirty mag! The B1z drill goes ahead in search of the further reaches of the A1 discovery. If the side drill encounters the gas found in A1/2 then all good. In fact more than good. If it doesn’t then it’s back to the geologists to pour over the latest data and come up with another plan. Will this cost? Yes it will.
I’ve been on licence areas where one drill has produced 9,000bbls per day yet a further drill 500m away has been a duster while another that is 2km away has produced 13,000bbls per day. On site geologists had different opinions throughout the process. The point that I’m trying to make is that it doesn’t always go according to the plan but there is always the chance that you will come up trumps.
The story here has been particularly unpredictable due to leaked placings and a few who have been in a position to exploit the advance warnings. Such is the game and there will always be people in that position.
It really is a case of asking yourself just how much of a risk that you want to take? Cut out the noise from rampers and derampers their input is of little value. As for sound bites from CEO’s well I have been in regular contact with a number of them from differing companies and I have never heard any of them being less than enthusiastic about their companies. They are never going to say ‘it’s a crock of ****’!!!
Do your research, set your level of risk, invest only what you can afford to lose and when you stop believing in your investment then get out. Graciously.
GLA. The drill bit is turning.