Hey I just thought, maybe Mr OPEC rang up Mr NOG and asked them to defer the extra Tui well, they dont want all that extra oil flooding the market.
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Hey I just thought, maybe Mr OPEC rang up Mr NOG and asked them to defer the extra Tui well, they dont want all that extra oil flooding the market.
There is also the consideration that Umuroa can only handle five wells, so they wouldn't want to use up the last slot with a Tui well while there are still prospects which could be tied back. The 50.1 mmb of reserves was contingent on getting an extra production hole drilled. Now apparently the operator feels that they can get 50.1 at least from the existing wells, so it is a de facto upgrade. If none of the adjacent prospects works out, they can go back and drill Tui-4h later and report an increase in reserves at that stage.
Good confident announcement from DS. The market liked it.
Who's put a rocket under PPP - up 9c --- Anyone 'know' anything?
Just to note, I got booted out at $1.28 today after putting in a final sell order this morning. Probably shouldnt have...was going to hold through to be part of the excitment with all this cash to spend haha
Balance, thats interesting. I will post a number of companies that pay more in dividends than their reported NPAT.
Check out some property trusts...do you think they will continue paying dividends if writedowns cause their profit to decrease substantially or will they just let their cash build up?
Most have their tenants locked in for some time so cash flow will
remain.
They may put up a special divvy or drop the DRP system. I hope they
do the latter. Else they could retire debt, as comercial interest rates have not dropped.
A great place to park surplus cash for the time being.
NAP is an interesting one !!
cheers BB :)
Surplus cash is usually distributed by a special divvy
Certainly hope your reasoning is correct Mr Tommy as i would do that if i were the powers that be in the JV team.
Only yesterday some farmers were kind of saying how good it was that oil had come back in price.I got through to them very quickly by pointing out that if all the dairy farmers killed off there yearling and calves that for this year there cows would have more feed and would milk better.This would allow milk prices to fall and we would all be happy.It certainly won them over very quickly as farmers are well used of thinking about the future,and could see that the oil industry is currently killing off future oil flows regardless of how sweet it is for the very short present.
So yes lets keep it in the ground at under 60US
Digger
are you sure umuroa can only handle 5 wells?
part of decision to defer the next production well is that production wells can be done a lot cheaper by a batch drilling process = more than one well.
expect 2009 exploration drills will result in a few extra production wells so cheaper to drill at same time.
if in the end they have to disconnect a field and thus reuse the slot on umuroa, then so be it - gives the field a rest and allow the oil to level out [reduce water cone]
provided umuroa runs on near maximum production then no problems and at the end of the day more oil is produced
also hows this for an idea - 2009 drill firms up another 50m barrels = another production vessel needed.
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