RE:Re Conference callTaal, to me they're saying that they feel that there is a high pribability of at least 340 million barrels commercially recoverable there in that field alone not including what the rest of Corentyne might hold.
I figure it this way: I figure that the cost to drill an exploration well and then drill and flow test an appraisal well is about 80 cents to $1 per barrel talking US dollars based on the initial 300,000,000 bbl find by XOM at Liza where they drilled Liza 1 & 2. They flow tested Liza 2. I'm told that flow testing an HTHP well costs about $30 million. Maybe somebody could confirm what APA paid. The above does not include seismic.
Fec just paid $16,000,000 for 4.7% So 100% would cost 100/4.7 × 16,000,000 = $340,425,532. At $1 per barrel exploration and appraisal cost they must feel that there is a high probability of at least 340 million barrels there. There might be a lot more but not even they know at this point. Nor does anybody know what the rest of Corentyne may hold. In order to find out, then hundreds of millions more dollars would have to be spent.
The above assumes that no premium was paid by fec for the potential of CGX's WI in the entire Corentyne block. And why should they?