Antelope 7

[admin]

Again from the last USB report:

Still talk about Antelope-7, but unlikely to be drilled ahead of certification in our view. Two impediments to drilling Antelope-7;

• 1) the pressure data from Antelope-5 and Antelope-1 already demonstrate these wells are accessing a large gas volume, and most likely accessing gas in the western part of the field. Antelope-7 may not add a lot of additional gas resource, even it was drilled;
• 2) the SPA between Total and IOC says that further appraisal drilling can only be considered if it won't hold up the LNG development process. Given the delays in drilling Antelope-4 and Anteloper-6 to date, we believe there is a case to be made that further appraisal would see the development timetable slip, meaning Total won't support the drilling of this well ahead of gas resource certification. We do believe this well will eventually be drilled, just not as part of the data set for the certification process.