Well as I see it we are back in a catch 22 position.
So 5% or so of the payzone has proven non commercial. We know from previous wells GGP have drilled that there have been problems and uncommercial zones but ultimately the well has proven a commercial success. This implies that there is still high % chance this could still be a winner.
The wording of the RNS is factual of course, is it telling us a story or not I wonder. Why attack the shallow zone first and seeming spend more money on the 800' pay?? Wasn't this the first 'moderate show' area that had everyone disappointed a month or so back. Perhaps they already guessed this was a non starter.
Without Aus Stock Excahnge rules I doubt PANR would have announced this to the market. We would still be in bullish mode. I feel sure there is more to play for.
The SP may recover this PM. Is it a better gamble now than at £1.70? My take on it is that there is still a fair chance of success. Unfortunately for us the Xmas break will not be so merry maily bec of Aus Exchange rules.
Still expect to see a bounce to around £1.50 this afternoon.
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