calling octanex directors, page-5

Steve51
If Matuku comes in, Matuku 2 is already locked, loaded and paid for via the put / call options with NZO (at 3.5 times loading). I think the JV would then go straight into development given that they can run flowlines back to one of a number of adjacent producers (one of the big pluses for this prospect that should also mean a much bigger in gnd valuation for the oil). This could be done to get cash flow and do a reservoir flow test at the same time. It would derisk putting their own FPSO on it at a later date. It also has a spectatcular effect on the COS (and valuation) of the other targets in the 51906 not to mention the outcome of the farm ins that are open for tender atm on adjacent permits 53473 and 52593, with first round offers due by 20 Dec. Targets in those leases are very substantial, over 200mbbls in primary targets plus more than that again in secondary. Can't believe the mkt ambivalence to Matuku, its a brownfields target not a wildcat, will greatly affect COS for the on trend prospects and will be spectacular financially for both NZO and OXX if it comes in. Add in the +$20m OXX has in the bank and you start to wonder why we aren't multipls of current sp?