This is quite an interesting presentation..
- Page 20 is especially interesting with respect to the prospects of a commercial oil find
- What’s also nice to see is how transformational Antelope1 actually is. Compare the net payzones (p13):
- Elk1…………. 88ft
- Elk4………… 166ft
- Antelope1.. 2277ft
- Add to that the fact that average porosity (8.8%) was a lot higher at Antelope1 due to the reef, and “The flow test recorded a maximum calculated rate at 545 MMcfd for a dry gas reading through a 6 inch capacity choke that was opened to 3 ½ inches or about 30% of capacity” and you’ll understand just how significant Antelope1 is.
- It’s net payzone size is one that is normally associated with those in the Middle-East. Compared to that, OilSearch’s payzone’s are tiny.
Here is what a well respected petroleum engineer had to say about the oil:
- Jack/Voice-I am glad to see that someone remembered that I pointed this out back on July 11th here: http://messages.finance.yahoo.com/Stocks… I am now glad to see that IOC has elected to show more clearly (on today’s chart 20) what I was trying to explain. This doesn’t mean, necessarily, that the oil is in the reef, it just means that they think it is in the reef. Now to take the http://www.interoil.com/presentation/200… chart 20 literally we can read quite a bit more into it.
- For example it appears that the oil column enters the reef about half way between Antelope 1 and Antelope 2. So what might that mean if it is true? Let’s look at chart 10. I believe if chart 20 is true then quite a bit of the red area on chart 10 would have the oil column in the reef. I think that if the oil column is present in the reef we can return the directional drilling equipment to the sender. If we have 257 to 387 feet of oil pay in the reef the vertical hole will produce commercial quantities of oil without drilling the horizontal drilling.
- I believe a well with 257+ feet oil in a reef with “good to very good” porosity could be expected to produce oil measured in the high four digits to the low five digits. Depending on how much production IOC’s management wants to see from an individual well they may go ahead with the horizontal hole to get more information as well as increase the rate of flow from the well.
- If the oil is in the high porosity reef, IOC can quickly obtain more oil than their refinery can handle so there will be no need to spend $350 million on the stripping plant. The money would be better spent on drilling oil wells and building the infrastructure to export the oil.
All of this is just my humble opinion.
I hope it lifts you spirits.