LOOKING THROUGH THE OTHER LENS Would agree with the 4 concerns the PESCOD LETTER outlined, re-cap: Number one: They need to get the leases extended by the government of Guyana. Number two: They have to find a rig. Number three: They have to find money. Number four: It would be good to see them joint venture out some of their other leases as well to give the little company some credibility.
As difficult as this may seem, it may help to look at all this from the persective of how a major oil company or independent would view this recent Jaguar-1 result. The reserve report on CGX's website paints a pretty good picture of what they might have been thinking prior to the Jaguar-1 news release. "Well, there is a risk with the stratigraphic trap...some uncertainty with the seal, etc...Jaguar is located in shallow water - haven't really seen this play be succesful at these shallow water depths...need to be in deeper water, etc. etc."
I do believe the percetion from some of the major oil companies and independents have changed after Tullow reported Jaguar-1 had successfully recovered 'light oil' from 2 turbidite fans. I believe this information is significant becuase it actually proves the play works (or should significantly improve the probabilty that the play will work continue to work as you drill deeper). How would Chevron, Total, Exxon, Shell, Anadarko, Murphy, look at these results. And it is not CGX making the statement - it's Tullow - the architect behind the Trans-Atlantic Margin Theory.
For a second - forget about what Sully or CGX and what they are going to do. In reality, this play is way to big for them anyway - including PRE. If the big boys want a piece - they are going to get it. The question is - what are they thinking and how are they interpreting this information?
Watch Tullow here... Make no mistake Tullow can move very quickly - just like they did with AOI...