[cpdiii]

The oil is there someplace. Exploration for oil is a numbers game. If you have a “good basin” the oil is there. However, you must drill enough holes in the basin to find it. When a major oil company such as “Stat Oil” of Norway decides to quit exploring a basin they make the decision on a risk benefit calculation.

If they will have a major return on their risks they will keep drilling. If the return on the risks is not great, they will quit drilling.

Bottom line is as follows;

1. The current contract will most likely deny Statoil profit based on current knowledge gained from drilling the recent dry holes.

2. The knowledge gained from drilling indicates the contract will not be profitable if they continue drilling even if they do discover commercial quantities of oil.

[HiTech RedNeck]

Dunno if Statoil has the best oil basin visualization technology... maybe a BP or an Exxon would better be able to site a prospective well. But Cuba can’t make them do it.