NR - the bad and the not as bad No wonder they were holding on to this NR. It is not clear what wells are included, but I certainly hope LM 5,6 and 7 are not included, or this is bad news.
Reserves were essentially unchanged from Sept to Dec 2012, in fact 2P and 3P are actually down slightly .... And best case scenario this only includes parts of La Casona. I have no idea how this is possible given that LM 5,6 and 7 were successes, and La Casona should have added incrementally. Technical downward revisions of 1.3 and 1.8mmbbls 2p and 3p?? Not pretty. There needs to be some clarification.
At least production numbers look good, and the delays in testing at la Casona may be related to the need for more barrel capacity, but these reserve numbers aren't pretty the way I read them.
On the positive side, La Casona production looks like it will add at least 2 wells by year end, and LM facilities are on track for May
All in all, I'll give it a slightly negative versus expectations.