It remains to be seen how the unconventional will play out before we flog it and of course, it is all a moot discussion until we can establish an economically viable flow rate from an exploration well. Hopefully from a forthcoming 2H well, given permits in place and year round access. If we can get the funding in place to do this, and if this does yield an economically viable flow rate, we will then have limited reserves status near that site and a massive prospective resource across the broader acreage. There will be many factors at play that will determine the value of those prospective resources (on the back of limited reserves and established flow rates), but that is when the company will be in a position to determine how we execute the "find it and flog it" strategy. There may be a value, pre-acreage-wide appraisal that is deemed attractive for the BoD to recommend a sell out at. Or alternatively, strategic and selective drilling of 5-10 appraisal wells could help drive up the reserve count and the value of the remaining prospective resource, far more than the time and cost consequences of doing so. The company has often referred to this Utopian goal as "creaming the curve". Time will tell.
Meanwhile, largely out of necessity and somewhat out of opportunity, we have sizeable conventional targets and leads to chase...on Icewine, on GB's Western Blocks, and on Yukon Gold. They may also form part of the find it and flog it formula.
As an aside, given your earlier questions relating to TAPS, note the following link from Alyeska, talking about their low-flow challenges and the various mitigation options available to them. In particular, please note the last slide in the deck inviting more volume as an obvious mitigation. http://www.alyeska-pipe.com/assets/...editor_uploads/2017 Low Flow Comm 10.4.17.pdf
Cheers
88E Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
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