RE: Gas3 Jun 2018 21:47
Regdid- I am not saying that a major is or isn't interested here and would also agree that a major would not be interested in small flow wells. However, in saying that there are other aspects that might interest a major or two. So,for instance if you compare the cost of building an offshore rig, drilling a single well (offshore), operating costs and cost of production per well including either underwater piping or barging is extremely expensive and would take several years to achieve.
On the other hand with block 12, it might be little wells, but the are inexpensive to drill/recomplete, FRRis near oil and gas infrastructure, the cost of production and transport to market is very low. So, it would cost less to develop (initial outlay) to develop this with almost immediate cashflow. These points can not be ignored and majors will look at this because the oil and gas industry has gone and is currently changing business models and looking for cheap and clean extraction reserves and are selling big reserves that are costly and or dirty to extract (such as Canadian black sands)
I am not an executive but do know that being close to market, I infrastructure, large reseves, cheap extraction costs, immediate cashflow (requiring less initial capital input), onshore and political will Block 12 has it all.