Bombers here......gulp!!!
It's not about the amount. For whatever reason it was done, the act in itself sends a very clear message to already suffering holders.
Geology, yes to a degree, i still have a couple of burning questions on this one. Why was the FTP witheld from the T3 report? If it was simply an oversight, why no amended report? Decline rates.....while there is much excitement about reserves and possible production from T1-T3 wells, it is still anyone's guess as to whether these wells will perform at a commercial rate ie. strong enough and long enough to breakeven on CAPEX/OPEX (
@Michaeljob presented a great model on this that highlights the need for wells to strongly outperform expectations). Booking a reserve does not gaurantee commercial success, it simply says the resource is there, whether or not it can be extracted at a profitable margin is debatable.
If any other company had achieved similar results in it's field work to what RLE has over the last 6 months, they would have doubled if not tripled it's MC, if not more. Positive drilling results with a maiden reserve just needing to be ticked off......yet here we are trading at 2-3c less than we were before the T2-T3 programme was even planned. So i think it's fair to ask why? Everyone will come to their own conclusions, but it is a very valid topic of conversation none the less.
But you're now finally somewhat pi**ed off and I understand that.
