Nobody really knows how it will perform, even after all this time, because while we have had some promising well results we have also had some problems with inconsistent well performance and fines.
So of course management don't think there's a high likelihood of a crap result. They are no doubt confident they can crack it, especially with the security of this GLNG deal. So good on them for backing their own judgement and telling the Chinese where to go.
I don't think there is a high likelihood of a crap result either. I think there is a high likelihood of a reasonable result, and I think the price that they will get from GLNG will turn a reasonable field into a decent profit for the company.
However I don't think this is going to be another Fairview or even another Roma. I do think it will be better than most of GLNG's other assets, though.
In the short term I'd like to see some good well flow rates and also some details on the plan to get the current ~12 TJ/d up to 45 or whatever the current capacity of the field is. Get to that before we start worrying about expansion to 100 TJ/d!
WCL Price at posting:
27.5¢ Sentiment: None Disclosure: Not Held
