or god forbid both . Firstly Tullow and AOI know Ngamia is a monster, Tullow have drilled plenty of wells in this area and could probably tell you the flow rate of each zone without testing and probably be off by only 10 %
Twiga unfortuneatly was a big step out but still nailed it and is almost as big in terms of pay as the well in Uganda that they kept refering to as the anasog for our Kenyan wells. If I remember correctly it was around 37 meters in 4 or 5 zones and initially floed at 13,000 +/- a day.
Now I don't think Twiga is going to do that but 2,000 would be huge and we still have a much larger structure to test up dip which could be significantly better.
Unfortueantely I think we are under pressure to get each block tested by a certain date so although we would drill these blocks and exactly the same targets on each we are being forsed to do it in the Gov's time frame and not our own. We would have probably prefered to continue on the string picking low hanging fruit but alas !!!!!. I do wonder why we dont just write a cheque to the Gov and buy an extension, afterall that's all they want, to collect as much dough as possible . If we drop the block the Gov gets some money from a new lessee but they will still have all the hurdles ahead of them that we've already dealt with like collecting data and securing rigs etc. which takes time. Why not just extend our lease ?????
I don't know where the bottom is but with $ 300 Mill in cash the market is saying that our assets can be replaced for $1Billion and everyone knows they cant. You cannot begin to replace a land position like ours that already has at least one Elephant of a hit and probably two Elephants with Twiga and maybe even three if you think about the potential of the shale alone. The Chinese know this is cheap, Merrill and Morgan know it and Tullow does too. I wouldn't be surprised if the Chinese started to pick aweigh at this pretty soon and I wonder about Tullow although they may be constrained by insider trading or even a prior standstill agreement with the Lundins.