Morgan Stanley this AM

[Getitrt2]

Maybe if they find gas in Antelope just north of the fault, they can drill through the fault and PUT them in communication if they aren't already. HA! (I know...not the same...)

[petrengr1]

In looking at http://www.interoil.com/iocfiles/documen..._FINAL.pdf slide 18 a little closer I now see that they have drawn in a localized high on the NORTH side of the fault that separates the Antelope Field from the Antelope Deep Prospect.  Maybe this is where we find the extension that can be in communication with the Antelope Field. Perhaps they are trying to say the productive area of the Antelope Field extends all the way to the fault that separates the two structures. So we could either drill one of the appraisal wells on the high just north of the fault to see if the Antelope field extends that far or we could drill the Exploration well on the north side of the fault to test the Antelope structure and then drill a side track hole directionally across the fault to test the Antelope Deep structure.

Or we could just drill two wells from the same surface location to the desired bottom hole location. Or (here is my final scenario) drill the first well vertically to see if the Antelope Block is productive. If the well is productive drill the second well from the surface to test the Antelope Deep structure. If the first well is a dry hole in the Antelope Block then side track that well to test the Antelope Deep.

Pet- Good am to you. I had printed slide 18 for my(growing) IOC file,so I went back and looked it over again.Keen eye,sir. I now see the localized high that I had overlooked.Your thoughts on future drilling plans are great. Please keep up your help to our board.

Palm- Yes it is the small circle but you have to look at this in the context of the scale of the map. Compare it to the size of whole Elk/Antelope Field. This would in effect extend the Antelope Field further South. They have changed the contour lines between the southern fault and the main Antelope Field to show a much flatter top of the limestone. If this is indeed the way it really looks then the field could extend further to the south. In the previous GLJ maps they had the limestone steeply dipping to the south, which would put the top of the limestone below the gas/water contact. Now they are showing it much flatter to the south so the top of the limestone may remain above the gas/water contact.

[Palm]

Pet, understood and that COULD be quite significant as you say. Possibly why Dave Holland and others have been so optimistic on what PRL 15 could hold, and obviously would be a case for GCA and GLJ to incease estimates. Also obviously why Hession asked for the "pressure communication" clause in the SPA. Is there any way for you to give a conservative range of what just an "expanded" Ant T-count would be (no assumptions as to Ant Deep) using the limestone assumptions you mention?

[Getitrt2]

Thanks, Pet. That could result in a significant increase in the amount of gas certified just for Antelope itself, right?

[petrengr1]

Pet, understood and that COULD be quite significant as you say. Possibly why Dave Holland and others have been so optimistic on what PRL 15 could hold, and obviously would be a case for GCA and GLJ to incease estimates. Also obviously why Hession asked for the "pressure communication" clause in the SPA. Is there any way for you to give a conservative range of what just an "expanded" Ant T-count would be (no assumptions as to Ant Deep) using the limestone assumptions you mention?

Since this is just wild speculation and with no numbers on the map I think I should not get into the guessing of additional possible reserves nuimber. I would say, if the extension exists, the thickness would probably be relatively thin compared to the main part of the field but, since we are talking about the top of the limestone, it might contain some of the  better porosity. The dolomite and high porosity limestone was at the top in the main part of the field.

[Palm]

Very fair Pet and understand. Obviously should be high on the list of the joint IOC/Total drilling program in PRL 15.

[Thylacine-2]

So if Antelope Deep is in communication with Antelope then the thickness of the limestone above the water/gas contact would be smaller in AD than in A. The top of AD may even be below water. That's because AD is in the down thrown block at the fault. But whatever amount of gas is proven up in AD, large or small, prior to certification would boost our numbers for the post certification payout at the highest rate.

On the other hand, if AD is not in communication with Antelope then it's a open question as to what's there. It's a different structure with a different water/gas contact, if there is gas. Could be a great discovery or not. But in this case whatever hydrocarbons are there will not boost our numbers for the post certification payout.

Damn! I love this business! It keeps life interesting.

[petrengr1]

So if Antelope Deep is in communication with Antelope then the thickness of the limestone above the water/gas contact would be smaller in AD than in A. The top of AD may even be below water. That's because AD is in the down thrown block at the fault. But whatever amount of gas is proven up in AD, large or small, prior to certification would boost our numbers for the post certification payout at the highest rate. On the other hand, if AD is not in communication with Antelope then it's a open question as to what's there. It's a different structure with a different water/gas contact, if there is gas. Could be a great discovery or not. But in this case whatever hydrocarbons are there will not boost our numbers for the post certification payout. Damn! I love this business! It keeps life interesting.

Thy- A cautionary statement. All of my comments are about the Antelope Field on the North side of the fault. The part north of the fault may be in communication with the main Antelope Field. I am assuming that the Antelope Deep will be below the Antelope gas/water contact and it will be an exploration play and will not be in communication with Antelope.

[sageo]

Pet, understood and that COULD be quite significant as you say. Possibly why Dave Holland and others have been so optimistic on what PRL 15 could hold, and obviously would be a case for GCA and GLJ to incease estimates. Also obviously why Hession asked for the "pressure communication" clause in the SPA. Is there any way for you to give a conservative range of what just an "expanded" Ant T-count would be (no assumptions as to Ant Deep) using the limestone assumptions you mention?

Since this is just wild speculation and with no numbers on the map I think I should not get into the guessing of additional possible reserves nuimber. I would say, if the extension exists, the thickness would probably be relatively thin compared to the main part of the field but, since we are talking about the top of the limestone, it might contain some of the  better porosity. The dolomite and high porosity limestone was at the top in the main part of the field.

Pet- My apology for the reef question yesterday.Not thinking about just where the fault was located,I guess.I must have left my brain at home when I left that day! Thank you and Palm et al for the good discussion on the antelope extension possibilities.

[Getitrt2]

Pet, if AD is below the A gas-water contact, why is AD potentially such a good exploration play? Because of a much lower gas-water contact in AD or a large perceived formation deeper below the water?