Excellent post concerning the various factors of oil exploration and production.
Of particular interest is the section in the middle which talks about the probability of making a commercial discovery, which depends on the factors listed.
It turns out that each of the twelve locations in the original leasehold are evaluated in detail in the RPS Energy report on the EEGC website, along each of the parameters. That is where the 2% probability for Bellevue can be found, as all probabilities have to 'hit' to have a commercial discovery. There may well be oil, but is it commercial?
Hopefully, the company will be able to raise money so it can drill, and we can find out.
It is now almost two months since the Sure Capital deal was announced, together with certain conditions which had to be met prior to issuing the proposed 'principal protected' notes. The most important was Sure's evaluation of the proposed collateral -- presumably, the lease. Seems like that should be done by now and results announced as certainly that would be a material event and significant milestone for the company, one way or the other.
Meanwhile, Bellevue must be completed in 8.6 months, per the lease terms.
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