~$320MM USD That is what Kawa-1 and Wei-1 will likely end up costing to drill. Truly a hell of a lot of money. I doubt either company will be around to see well #3 drilled (least not in the current state we have). This is a big boy game and both companies have shown to be amateurs at this game. Original Kawa estimates were $80MM and Wei were $93MM (so $173MM total). So be to almost $150MM off is truly astonishing and can't fight facts here. For everyone's sake, I just hope they don't screw up the most important 1000ft upcoming. My money, like everyone's else, is definitely riding on it.
For Frontera, they have in essence paid for the entire thing to date (either directly or through purchasing more CGX shares/Working Interest in Corentyne).
Rumors abound that Frontera is for sale (either in whole or certain segments). However sliced, Frontera management has truly pinned their companies fortunes (and ability to hold power in JV/asset sale) on the next 1000ft of drilling in Wei-1 and using this result to create value for the company.
For Frontera shareholders, this aforementioned $300MM USD definitely could have been used for dividends, share buybacks, increased production across current portfolio, acquisitions of actual current production in other basins globally. Many people wonder why their share price is so low... I'm personally not shocked. Columbia is a horrible place to be and big chunks of free cash flow have been pushed to a very risky offshore play with no guarantee of return.
On one hand, I can definitely admire their "guts" for taking a chance in Guyana. On other hand, it definitely hasn't paid off (least not yet) and they are in true gamble mode now. Either way, all these games played will be coming to an end soon. They can run but they can't hide and all investors alike we will to see the end game soon enough here.
I'm sure everyone will be on pins and needles watching the rig gamma ray/resistivity and associated chip cuttings in the coming weeks!