NWE- the shell and possible 20 bagger

[macduffy]

If SW is uneconomic/unprofitable I would have thought that AED won't develop it and NWE will miss out on that part of the ORR?

Disc: Holding NWE

[Serpie]

Gidday MacDuffy,

I make the distinction between economical and being profitable because I think if it's economical it will proceed, and NWE will get their royalty, regardless of whether AED make any money out of it or not.
As we're seeing with NE there are many factors that affect the profitibility of the project once it gets going, but as long as it gets going that all that matters for NWE.

Hopefully everyones had a chance to digest this key difference between AED and NWE over the weekend, and we'll see the buyers rule today.

[macduffy]

Hmmm.... Not quite sure I can see how it could be economic if it is unprofitable to AED. I guess if AED see it as being "marginally" profitable they might be encouraged to proceed. So it may depend on how oil prices move as time goes on.

[Crypto Crude]

I read somewhere just cant remember where that development costs for SW are expected to be $200m US.... Independant expert Gaffney, Cline and associates estimated recoverable oil to be 40.3 million barrels for the SW field...
This project would still be profiatble if reserves were slashed in half to 20m recoverable... other prospects such as Woodlea may contain oil..
Who was this character that was slapping words like uneconomic and unprofitable on SW ... It surely wouldnot be developed if that were the case and AED have given no indication of such a thing and nor am I...

.^sc

[Serpie]

I was simply making the point that the profit margin on SW (or NE) is irrelevant to NWE. It doesn't affect NWE's return from the project.
May have made my point in a clumsy way - my apologies.

SC- have you been banned from SS too? Tee hee hee.

[Crypto Crude]

sir pee,
I havenot been banned... wouldnot bother me if I had...
They pulled my post this morning and slapped a speeding ticket on the thread... Did you manage to read my post b4 it got pulled?

.^sc

[Serpie]

I did mate.

Things were getting a bit hostile over there, and getting off topic too. I was just as guilty as anyone. We'd better watch ourselves otherwise we'll get done here too!

At least everyone agrees that NWE is sound, and nice to see it recovering some of the losses today. Did you jump back in last week?

[Crypto Crude]

sir pee,
I didnot re-enter...
Im waiting...

.^sc

[bermuda]

sir pee,
I didnot re-enter...
Im waiting...

.^sc

Shrewdy,
You missed the boat. Get some now if you want in

That is the way I read it.

I have often thought about putting my entire portfolio on this one but I sold 130k for a small loss to concentrate on BOW and VPE.

Good luck.Has everything going for it.

[Crypto Crude]

sir pee...
Oh, I did get banned.... hehehe....
it was well worth it....
....
bermuda,
Im waiting on ann from MEO and then I will make a judgement
on what I shall do...

.^sc