GREY:CLLZF - Post by User
Comment by
myNEXTmillionon Dec 14, 2011 12:59pm
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Post# 19321746
RE: RE: more confidential wells
RE: RE: more confidential wells"Or, more accurately, money that could be put to better use increasingproduction via drilling more well pairs for Pod 1. There are already 4of those licensed.
ANNNYWHOOOOOO..............I can't seem to followwhat management at this company are thinking. This does not seem like agood business move."
The purpose of drilling more wells, especially in a new area, is to boost the amount of 2p reserves. Improve the amount of the reserves, you improve shareholder value. Originally 7 pods were proposed, so they could be doing development work (building reserves) for a new pod.
Some would come back and say the money should be spent on expanding production on pods 1 and 2. Bring reserves to 1 billion 2p and huge value would be added. I think building reserves is money well spent.