re Kowalik - my thought is that Hilcorp were only obliged to complete it (if they could). They haven't written it off yet - they've been (very) busy doing other things. But I don't think that Hilcorp has any obligation to drill a replacement well if Kowalik has to be P&A'd.
Morgan and Rancho appear to be on trend either side of Kowalik. Kowalik was very rich in condensate when it first flowed.
Hilcorp seems to have drilled those 2 wells like clockwork. Easley appears to have been on trend with Weston and they seem to have hit the same problems encountered by TCEI but there was no reports of lost equipment.
As to what might be planned after the 3 Longhorn wells and the Ipanema well - the JVPs are talking about further drilling (unspecified) on S/L later in 2010 and EME gave its contribution obligations to such drilling as one of the reasons for its recent capital raisings. Hilcorp has stuck a Saturn V under its original schedule of commitments. My guess is that the two rigs will return to S/L - AUT is still talking about capital raising in 2011 and, though it has cash, contributing 25% of drilling costs for Longhorn and 30% for Ipanema is very different from its 10% contribution obligation for S/L. It and ADI seem to have cash for that.
All of the JVPs appear to be now cashed up for further drilling on S/L this year.
It sounds to me that they have taken an "in principle" decision but may not have finalised the detail. We'll have advance notice of the drilling intentions from the applications posted on the TRRC website.
ADI Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
