GREY:ENGFF - Post by User
Comment by
steadfaston Mar 27, 2011 7:57am
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Post# 18346454
RE: Question about the Kunene project
RE: Question about the Kunene projectI will try to answer your questions, and Welcome to ENG BB:
1. ENG believed with the info they had, which likely was not very much, that the well may not be
commercial, partly due to the integrity of the well, maybe too much dyanmite damage, only
Jeff and his advisors know.
2. I do not believe there was any disagreement with the JV's. Simply a good business decision on
Jeff's part, although I recall Aug 6, 2008 very well and I can assure you the market did not accept
this NR kindly - the stock to this day has never reached the price it was on Aug 5, 2008.
3. $1.6M their costs to test that portion and 2 times = $3.2M to reinstate. ENG got to keep the $1.6M
they would have spent 3 years ago and IF it is Commercial, and a possible re-entry certainly
is encouraging, ENG will happily pay the $3.2M.
If I remember correctly it cost $130M to drill Kunene #1. One needs very deep pockets to be in this play.
I am hoping when we get the results of Kunene #1 which are expected anytime within one week to
3 months that the stock will surpass the Aug 5 figure. Time will tell. Sometime in 2nd Quarter.