Can Tullow/AOI slow things down?
Seems like they are drilling lots of wells fast, which made sense in a higher oil price environment, and for AOI if it was looking to sell out.
Now, in a lower oil price environment and decreased asset valuations, it makes sense for AOI to slow things down, wait for the oil price to recover in 1-2 years, and with that energy company valuations for possible takeout.
Tullow also needs to preserve cash.
A slowdown also gives Kenyan govt time to straighten out the tax rate, which makes no sense with lower oil prices, the oil will simply stay in the ground.
Question: Can Tullow/AOI slow down their drilling campaign, with their agreements with Kenya?
I am unhappy that Tullow left the most prospective block and some other good ones to be drilled until 2015. It was okay to prove up this basin, but I would be very unahappy if AOI is sold anytime soon at this undervaluation based on long-term oil prices, because we drilled less prospective basins with produced some non-commercial wells.