Ann: OBL PESA Deal Day Presentation Sunday 6 Apri, page-8

re: Ann: OBL PESA Deal Day Presentation Sunda... Once again I think it's less a management issue and more individual posters here inflating the importance of these other supposed irons in the fire.
Cyrano has been called a "peak oil" strategy by management for as long as OBL has had it. That told the market that nothing was going to happen with it for years or until there were peak oil prices. The oil is only commercial at peak oil prices and it was purchased at a time of rising oil prices pre US shale revolution. They've probably spent between $600-700k acquiring and maintaining it so it's not like it was a big waste. It's also for that reason not a big asset.

The Vic gas permits have never shown any real sign of moving forward. I don't think management have ever pretended a drill was imminent there. Not to my knowledge at any rate. It's always seemed like it was 3-4 years away.

It's not really purposely stringing projects along it's just what junior oilers do. You acquire assets and then it takes you forever to do something with it (because you have no money and rely on attracting people to help you do it) or let it go because it's costing too much to maintain or permit commitments can't be upheld or you got caught out at a bad time in a resource cycle, like all the companies that has conventional gas assets in the US a couple of years ago.

I mean it took them a full four years to get Backreef-1 up and it was very cheap compared to Cyrano and Vic. They certainly weren't stringing it along for four years, they were trying as hard as possible to get it drilled it was just a bad economic environment.

They've stated recently they were looking to sell assets, it seemed pretty obvious to me that meant Cyrano and/or Vic.

Really the only issue I have here is I don't have a high opinion of the shallow conventional oil at Backreef because of how small the individual targets are, which is why they are always referred to in the aggregate. What has changed though in the last couple of years is that they are now talking about new seismic which would actually allow us to take the super risky stratigraphic traps where most of that oil is seriously if the seismic comes back encouraging. So that is a step up in credibility. Also the aforementioned coring costs seeming low and the low likelihood of new deep drills this year.