RE:Future Recoverable ExpensesKcac1, I belong to a group of people with oil patch experience in whatever discipline that you can think of. Here's what we expected when they spud Wei-1. TD by late May, early June. Then multi-zone DST for about one month. Then announcement by August of test results on various choke sizes confirming no permeability barriers, great pressure build back rate while shut in after flow and at least 500 million boe recoverable from 3 zones, at least 60% light oil, 20% NGL and 20% gas. Then negociations for JV which take a while I guess.
Instead we have early November still waiting on lab results from f'n cuttings samples!!!!????? And people wonder why volumes are so low? Nobody wants much to do with these 2 companies.
The cost overuns don't bother us one bit although they do really bother one poster over on the oyl board. Cost overuns are the norm in exploration. Too many factors that cannot be predicted with 100% certainty. So you build in continguencies in your forward plans. These continguencies cost money. So what that they spent $80 million more than expected. What's that add to the per barrel E&P cost on 500 million barrels recoverable? 80/500 of a dollar? 16 cents extra per barrel BFD!