If GSPC has spent $100 million (they own 55%), that means OEX...

If GSPC has spent $100 million (they own 55%), that means OEX spent $80 million. that seems a little far fetched. one thing they do in India is deliberately confuse the numbers, maybe GSPC spent a lot of the money in Cambay when it was in JV with Niko. perhaps that is the major contributor to the $100 million. one thing that cannot be disputed is the revenue, this is appalling and can only be attributed to the poor choice of drilling strategies by previous MD, who was a Director during the whole period. spending $36 million on well 76 was a major blunder.
77 did not deliver, which makes it even worse. they spent more than the budget and they failed to produce the hydrocarbons in the manner expected. too much effort on 'proof of concept' rather than 'proof of profitability'.
i'm glad that I am not in this share right now. it seems they have blown it again, another country fiasco, just like Oman, Indonesia, Timor Sea. Don't forget that there have been a few common denominators in this fiasco, time to look at who these people are.
another perspective...if it takes a year to drill a well and 2 years for payback, then any future wells will be revenue neutral at best at the time the PSA expires, so why would you drill any more from here? Renewing the PSA should have been a top priority 2 years ago.
if GSPC has spent 100 for a return of 3, why would they not sell out and focus on other investments? I think they are afraid that the asset is good, and if they leave it, thus putting a stop to their interfering ways, the asset might just pay off for the newcomers.
Best if MD shows a strong hand and pulls out while there is money in the bank. Alternative is to drill a sole risk well, but do it NOW. high risk to do that, but better than to fritter it away on salaries going nowhere.