If one examines the HRT Solimoes Basin Playbook, they do the front part of the EDP resource gameplan
Explore - found great gas assets already, did a farm-in with TNK-BP for $1,000,000,000, certain milestones.
Development - this is when TNK-BP plays a larger role
Production - HRT% changes from majority to minority and TNK-BP get's into drivers seat and pays more milestones to HRT and higher % of costs
I expect the same offshore Nam with GALP as HRT winds down it's 86% into development and then production. Go broke....are you kidding?
Some of the doughhead posters here complain that production is a few years off...so what? First HRT needs to find oil. That's the first binary event in Exploration. If they are only interested in production then go and buy those companies and stop complaining here.
And yes, HRT is not drilling a production well into Wingat, it's drilling an Exploration well into Wingat
The next doughhead poster about SP going from $10 to $1 gains an Ignore from me...who freaking cares anymore....what about the UNX 80 cents to $6?
So HRT has lost 90% of SP ...what's the downside from here? According to those doughheads is seems like it's a whack more than 10%...if your downside is only 10% and you can't sleep at night and post that here, join my Ignored list.
From my analysis, the downside risk is rather limited compared to the upside potential. If Wingat finds a great pool of oil, first drill, the line-up around MM's office in Rio will be huge, as will SP. New oil district with 3 more Exploration wells to be drilled right away.....not a Chariot vapor dream.