g12mO, I think you know why posters are commenting on the news...

g12mO, I think you know why posters are commenting on the news that Chevron is not proceeding to stage 2.

It has direct implications for all the other players in the basin, IMHO most directly on DLS.
BPT states that no more wells will be drilled in the foreseeable future, lots of optimisation (I think that is basically saying, we are going to wait and see if we get any farm-in offers, otherwise, lets hope the price of gas jumps dramatically and all our hard work becomes worth something).

As you say, DLS has de-prioritised their ATP 940 unconventional play (homogeneous with BPTs) to allow themselves to focus on cash flow and short to medium term projects. BPT will have to do the same, the problem for them, is that they simply don't have any medium term plays. Yes, they can drill for more conventional oil on the acreage they have, but they don't own the majority of any of it. DLS and SXY do.

Also, very importantly, DLS and BG have put their project on hold, which means that if BG want out of DLS due to the Uncon play proving less than what was expected, they most likely have a willing buyer in Seven Network. This would mean that BPT have 4.57% of DLS, Seven have 8.01% of DLS and BG have 7.86%. Meaning BPT and Seven might have a possible 20.44% if they make a move..

The decision might actually be seen by some in the market as a positive, in that BPT will now start generating profits instead of just ploughing it into a very long dated and clearly now, less than economic play (at least for now anyway).

I also think Reg Nelson stepped down early because he knew Chevron was going to walk, and he has basically staked his reputation and 100's of millions of BPTs dollars into the play over the years, and for now, its received a fail mark from Chevron. Also, we have the new MD of BPT, Rob Cole, who specialises in Corporate side of things, not on the geology, which of course means BPT are most def going to be doing something. They have to. Otherwise their production profile is going to taper of very quickly.

Yes, I know I am like a broken record, but BPT have to make a move soon corporate wise. When you look at their actual acreage in the basin, whilst its vast, the majority of it is only 20-25% ownership through the SACB J/V with Santos and Origin. They simply need more acreage, and IMHO, the best acreage for conventional oil and gas is held by DLS. So.....

This article (written today) posted by 'locshare11' sums it up pretty well, although it does not talk about DLS as much as I do. Seven steps up Cooper focus

By Monday the papers will be giving this a lot of focus IMHO. Very interested to hear others thoughts.