It looks like we gave up 40% to shell for not much in return.IMO
What are your thoughts BB?
We are short, very short on cash and must honor commitments, so this move is the right one in my opinion....that 40% farm out, not only covers part of our seismic obligation but also covers 100% of the drilling...and drilling in the North Sea is NOT cheap. I don't recall seing a number for this poking run , but $30 millions+ per well in the North Sea is rather common....so ouff. on that.
Furthermore, said property has a 2P of 8 Million boepd.....our current 2P stands at 33MM, it sort of reduces it to ~ 29MM.
So all in all I'm OK with this, better then selling the entire assets and not get revenues in the futur.
That said, stay tune for I am expecting a couple more of the likes of this......