A little overlooked, from Morgan Stanley

[admin]

Elk-3 is between Elk -2 and Elk-1 and is targeting a quality matrix reservoir in the lower limestone interval, which was discovered in Elk-2. Elk 1 never reached this depth while Elk-2 (no seismic pre-drill) went too deep in the zone and, while there was good rock quality and porosity development, it was below the gas-water contact producing a big water well. Elk-3 could add resource, particularly if there is any reef or better matrix rock in gas window.

[jft310]

Henry Aldorf believes IOC can add T's after driliing the two wells. Both RJ and Morgan S mentioned the same.

[admin]

Henry Aldorf believes IOC can add T's after driliing the two wells. Both RJ and Morgan S mentioned the same.

Yes, I think that's likely (although we have to drill first, but we're almost there already, as it happens). The question is, how much will they add for B/T. Pity they couldn't do another well there this year, that could have nailed it.