High risk project finance: the consortium can afford a total...

High risk project finance: the consortium can afford a total loss on one in five per year and break even in very broad terms. They're relying on the payback period of the wells (previously, I thought, 12-15 months) plus the legacy cash flow from existing production. Most of the coupon will be a self-insurance premium against default loss.

Nevertheless, the consortium seems to have confidence in TXN's ability to deliver. Perhaps we should also.

sushi - SEA may not have wanted to play banker. The previous comments on this bb suggest that they are desperate to re-invest the money, so far as it represents a taxable gain, in depreciable capex.