That would be the best outcome distef, to have a major modelling Block 5. Clearly Peter Kingston has no idea what he is doing. Iti-1 was said to only have failed due to well in the wrong location, if they were that certain after the idependent review they would have gone for Round 2 on it.
Here is Fox-Davies take on Avivi-1:
Comment: We suspect a lack/breach of top seal could be the main cause of failure in such a shallow well but will wait to hear a fuller comment from the company. The failure of Avivi-1 to encounter hydrocarbon, after a complete geological re-modelling of the whole sub-basin by the Company on the back of the Iti-1 well, is clearly not a good sign for the prospectivity of their Ugandan licence. We adjust our target price from 3p to 2p and change our rating to Sell.
Im of the opinion its not the Block thats the problem, it's the "reservoir engineer," Mr Peter Kingston. It would be welcomming news to hear a major taking up a share of 50% in Block 5 from TRP. At least the geos and engineers at Tullow and Heritage clearly know what they are doing.
GBP Price at posting:
19.0¢ Sentiment: Hold Disclosure: Held
