Thunderhawk success positive for Spinnaker, Murphy, Pioneer - Goldman Sachs April 13, 2005
While the second Thunderhawk well has not yet finished drilling, the 500 feet of pay encountered thus far could point to resource potential around at least the midpoint of the pre-drill 50-150 million barrel of oil equivalent (BOE) range. Results from the remaining 4,500 feet of drilling, in addition to a potential third well in the future, could help delineate a third sand which could further increase resource potential. Thunderhawk seems close to having the potential for standalone development, though partners may decide that for timing and capital reasons tying in to neighboring infrastructure (Thunderhorse or Devils Tower are nearby) may be preferred. We view this positively for Murphy Oil (OP/A, 37.5% stake) but especially for Spinnaker Exploration (IL/A, 25% stake) and Pioneer Natural Resources (OP/A, 12.5% stake) which could allay concerns about project inventory.
Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report: Brian Singer, Arjun Murti. |
