06-20-2015, 12:22 AM
Another comment: On the drilling, if per your schedule we are drilling outside of EA 4 wells/year it will be for the purpose of the next PRL sell-downs; Wahoo area being the most likely should they hit there. On the MS interview he cautions several times on how uncertain this prospect is due to the large step-out from where they have drilled to date. Should Wahoo hit AND prove to be a true extension of the reefal "string of pearls", we will not only have a nice sell-down, but it likely will be hard to hold onto the company.
Should Wahoo not prove out, they have other prospects, but they may cut back on drilling until/unless they find another promising multi-T prospect/area.
But with what we have within PRL 15 between FID on a 2-train startup and the expansion FIDs I'm not too concerned overall with a major cash squeeze down the road. They have done a great job managing cash needs well before there is a crunch since Hession's team has taken over. That was a big issue in the past, but now is in good hands.
Should Wahoo not prove out, they have other prospects, but they may cut back on drilling until/unless they find another promising multi-T prospect/area.
But with what we have within PRL 15 between FID on a 2-train startup and the expansion FIDs I'm not too concerned overall with a major cash squeeze down the road. They have done a great job managing cash needs well before there is a crunch since Hession's team has taken over. That was a big issue in the past, but now is in good hands.