RE:RE:RE:RE:RE:Double DribbleRepsol will have spent $28 million to drill this first well. ($8 million costs reimbursement + $10 cash payment to POE + $10 million to drill the first well)
The first well was supposed to be the Anggun-1 from their earlier presenation but the location was switched to the current well AYU-1 which happens to be at the edge of the play. I am guessin they did this due to cost of the road to get access to the site. Now they have a road already into the site.
In my mind it would be 50:50 whether or not they chose to drill a second well if the first is a duster. This would depend on what they find of course, but POE would be responsible to half the cost over $5 million.
Everyone has their own opinion, but I agree with you that there is a fair chance Repsol considers spending $7.5 million on a second well as long as they still have confidence in some of the other prospects.