Depends on whether you are wild catting or doing near field step outs. The WC ratio is about 10 to 1 but as you can see off the East Coast of Africa atm, step outs are 3 to 1 (or better). BG Group have a run of 5 discoveries in a row running. Hard to assess the COS for Matuku but the OMV fast tracking and expensive forward planning for Matuku 2 tells me that they are pretty confident. If you accept oil at $100bbl and you find 65m bbls recoverable close to existing production capacity, well its probably worth having a crack. Interested to see where OXX is if it comes in, not to mention all the look alike structures in their NZ farmout gnd currently being showroomed.
OXX Price at posting:
24.0¢ Sentiment: ST Buy Disclosure: Held
