Analyst Views | Is Providence‘s update as good as investors might at first think?
SAM WAHAB SEYMOUR PIERCE
The updated recovery rate is currently only applicable to the Basal Wealden where 756m barrels of oil is established. This represents a significant uplift from the prior 16 per cent recoverable guidance for the interval and the field as a whole.
SANJEEV BAHL NUMIS SECURITIES
Recovery factor will be determined by the farm-in partner that funds the development of the field, and we are unsure whether a partner would be willing to farm-in based on a mid case to low case resource scenario, and a wide range between the two exists.
ANDREW MCGEARY NORTHLAND CAPITAL
This announcement does not disappoint but the fairly wide range indicated suggests this is a fairly early prognosis open to further refining. However, if the 31 per cent incorporated into the initial development scenario proves accurate, this would be very good news.