Triceratops-2 Summary

[strategyguy536]

Pet, thank you very much. Your informed analysis and logical speculation provides much more information than management's summaries. I am sure we would all like to know more from IOC, and then hear your analysis with more data.

I have not been counting on oil at any time from any wells to date, and we don't need oil to get good deals or great numbers. OTOH, like the pony, there must be oil somewhere, and with all the acreage and seismics, IOC will find some in the future. It will be a big kicker in valuations, as it will speed IOC's operating cash flows.

[Tusker]

Greetings Pet,

I return to what was called the GABP meeting of 2011, I looked at the view of the hard streak and described it as a sandy-browm layer. The significance I suggested was condensate. - In my eyes, clearly shown on the seismic, with 20 minutes of darkness and 300% plus resolution.

Is there potential for this streak to extend past the panels that we are viewing? I can see the up dip side of the platform - but does the streak follow a possible east to west uplift and a folding on a lateral ?

With reefs, I occasion to look for what is referred to as the "Wall". Inland sea, green versus blue. I do not see a original reef yet. South?

Patches of reefs (WA comment). My observation was from south to north - a trend? Migration (reef) as a region? Platform prior to folding?

It is a honor to meet your wife and you.

Thank you for sharing the brilliance.

KB

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I asked Wayne several questions back on June 18 about the missing details of the technical data. About all I got out of him was a promise to give us a thorough technical update on Triceratops-2 after they complete the testing of the lower zone.
They have told us that the lower zone has a different pressure than the upper zone. I have interpreted that to mean that it has a higher pressure but we do not have the pressures (numbers) to back that up. The lower zone is about 1,500 feet thick if they are able to prove producible hydrocarbons all the way down to 2,030 meters. If this proves to be correct the larger percentage of the pay will be in the lower zone where we have higher pressure.

The testing of the lower zone should prove (or disprove) if there are producible hydrocarbons below the Bwata-1 gas/water contact which was expected to be at a drill depth of 1,892 meters in Triceratops-2. If it is true that we have producible hydrocarbons all the way down to 2,030 meters that will lower the gas/water or oil/water contact by 138 meters (453 feet). If you look at http://www.interoil.com/presentation/201...inal-1.pdf chart 24 this would move the gas water contact (red dotted line) to the northeast, making the area of the field larger and increasing the height of the gas/hydrocarbon column from 5,500 feet to 5,950 feet.

The most important question that I asked Wayne is: Can we see the 80 meter hard streak that separates the upper and lower reservoirs on the seismic and, if so, do they think this higher pressure reservoir and lower hydrocarbon/water contact applies to all of the field to the north and west. If this turns out to be true we will have two reservoirs throughout the field with the more shallow reservoir having lower pressure than the deeper reservoir. Since we got the sample of clear condensate at 1,938 - 1,967 meters drill depth at Triceratops-2 I am pretty sure the lower zone will be a gas reservoir in the up dip parts of the field to the north and west. That could mean that the largest percentage of the field (below the hard streak) will have a lower than expected hydrocarbon/water contact and a higher than expected reservoir pressure. Both of these parameters will add significantly to the Triceratops Field reserves. We await the results of the testing of the lower zone and the thorough technical update to follow.

---

I asked Wayne several questions back on June 18 about the missing details of the technical data. About all I got out of him was a promise to give us a thorough technical update on Triceratops-2 after they complete the testing of the lower zone.
They have told us that the lower zone has a different pressure than the upper zone. I have interpreted that to mean that it has a higher pressure but we do not have the pressures (numbers) to back that up. The lower zone is about 1,500 feet thick if they are able to prove producible hydrocarbons all the way down to 2,030 meters. If this proves to be correct the larger percentage of the pay will be in the lower zone where we have higher pressure.

The testing of the lower zone should prove (or disprove) if there are producible hydrocarbons below the Bwata-1 gas/water contact which was expected to be at a drill depth of 1,892 meters in Triceratops-2. If it is true that we have producible hydrocarbons all the way down to 2,030 meters that will lower the gas/water or oil/water contact by 138 meters (453 feet). If you look at http://www.interoil.com/presentation/201...inal-1.pdf chart 24 this would move the gas water contact (red dotted line) to the northeast, making the area of the field larger and increasing the height of the gas/hydrocarbon column from 5,500 feet to 5,950 feet.

The most important question that I asked Wayne is: Can we see the 80 meter hard streak that separates the upper and lower reservoirs on the seismic and, if so, do they think this higher pressure reservoir and lower hydrocarbon/water contact applies to all of the field to the north and west. If this turns out to be true we will have two reservoirs throughout the field with the more shallow reservoir having lower pressure than the deeper reservoir. Since we got the sample of clear condensate at 1,938 - 1,967 meters drill depth at Triceratops-2 I am pretty sure the lower zone will be a gas reservoir in the up dip parts of the field to the north and west. That could mean that the largest percentage of the field (below the hard streak) will have a lower than expected hydrocarbon/water contact and a higher than expected reservoir pressure. Both of these parameters will add significantly to the Triceratops Field reserves. We await the results of the testing of the lower zone and the thorough technical update to follow.