RE: RE: RE: RE: Leduc # 1 The fact that Repsol and Tullow are invoved, with a 77% hit rate over the last 5 years should tell any layman we are in great company at Jaguar...nothing guaranteed but a very realistic shot at a 10 bagger from these ridicouls prices. The big question is do we JV before or after results for Jaguar are in. If we do it before, we are not in a great negotiation position. If they miss at Jaguar, even with a JV on ED, we are still in trouble. If they hit at Jaguar, we are de-risked by a fair margin I would think and then we are in a great position to do a JV deal. I know most would call for a JV on ED if we can get a fair deal. The way I look at it, I would think either both Jaguar and ED have oil or both do not. A JV now when you think in those terms may not be the best idea. If Jaguar hits with its 1.1B barrel of oil, how much does the value of ED go up by with it's 2.5 BILLION barrel of oil potential??
At the end of the day, if there is oil, we will all be very happy. If there is no oil, no matter what JV is in place, we will lose our shirt. So make sure that when we get close to crunch time, you only have risk capital in the game!
G.