The well will either be in WA-362-P or WA-363-P. Octanex are now free carried through the cost of a well estimated at US$50,000,000. They are also free carried through a very large 3D seismic which will cost more than US$10,000,000. Therefore it is safe to say that Octanex is free carried to the tune of about US$16,000,000 (probably more). It is clear the JV will be targeting the Gigantor, Ghidorah and Godzilla prospects.
2010 (Expected) News: Octanex are expecting their 3D results for the Winchester prospect in Quarter 1 2010. The permit will be in year 6 of the work program. If they wish to pursue the lead, they will need to either drill next year or at least achieve a well commitment. As stated in their prospectus under "near term objectives" they seek to farmout an interest in both WA-323-P and WA-330-P.
We should expect news on Shell progress in 2010, given that OXX is entitled to monitor their progress.
EPP34 farmout will be progressing. If farm-in partner unachieveable OXX will look to relinquish the permit
Then we have the 3D by OMV/ENI which is expected to commence Quarter 1 2010, with the aim to have a drilling location by Quarter 3 2010.
OXX also has shares in both MOG and CUE, which provides it with some Artemis exposure.
2010 is a big year for Albers.
OXX Price at posting:
40.0¢ Sentiment: LT Buy Disclosure: Held
