Eco (Atlantic) Oil & Gas Ltd V.EOG

late drilling deal

[minigoon]

I found it rather strange that the deal was made 6 days before results came out today, i think the deal was made for associated parties having a working interest now, all parties are allowed to use the drilling formation results for future drilling on other strutures in the area. One would think the well being drilled would confirm zones and either confirm or not geology before the well was drilled. Even with Exxons state of the art now how it gives everyone a little more info of the ( actual ) zones in the basin

[Lonegaurdian19]

Exxon is sniffing out the basin, they don't care from a financial standpoint if they miss a few moonshot wildcat wells. This is obviously to the disadvantage of minority/non-operating partners. For a comparison: CGX is going all in on a well that is between multiple proven wells. The third well in Canje is interesting but still Exxon putting JHI at near term risk as their geologists likely

[simonx72]

Interesting logic Loneguardian, although I think if they were just deciding on an FPSO then why not just drill inboard in the first place? What's your prediction on the well outcome?

[Lonegaurdian19]

From my previous analysis I said 50/50 depending on if Bonboni was drilled first (see below)   From all things available this is a risky well, analogues wells in Suriname we're not commercial (drilled by Apache in their northernmost block). This well also follows the pattern of just where the basin seems to end.  1/1 on my previous post    RE:Well We Spent