02-23-2013, 09:20 AM
OK - rushing in where angels fear to tread . . . . 
Note that this discovery is offshore the Falkland islands - not exactly close geographically to PNG or the Far East for that matter !!!
The "punch-line" is that they are using a $1 to $6 per barrel discount when modelling the economics of their discovery. (their condensate has an API gravity of 44.5 to 49°). Anyone know the API gravity of condensate from Elk/Antelope ? Anyone know if our discount should be $10, $20, $30, $40 per barrel ? (with WTI current pricing at about $110, if we are selling at $35 we are allowing Mitsui a $75 discount !!!).
http://www.energy-pedia.com/news/falklands/new-153233
In April last year, Borders & Southern announced that it had made a significant gas condensate discovery with its first well in the South Falkland Basin. The Darwin structure comprises two adjacent tilted fault blocks: Darwin East (which contains the discovery well 61/17-1) and Darwin West (untested). The fault blocks are clearly defined by high quality 3D seismic data. Fluid analysis has revealed that the discovery contains a relatively high liquid content. Initial reservoir engineering studies, suggested that 130 to 250 million barrels of liquid could be recovered, with a mid case of 190 million barrels (split almost equally between the two fault blocks). Subsequent studies have shown that, if there is strong aquifer support, the mid case could be as high as 210 million barrels. The reservoir engineering study has also demonstrated that more liquid could be recovered by gas recycling than by gas depletion.
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A geochemical analysis of the condensate liquid has been undertaken along with a screening level marketing study. Whilst the quantity of condensate available for analysis was limited, and further analysis will be required, preliminary observations indicate that the liquid is typical of an ultra-light crude oil and somewhat heavier than most condensates (API gravity of 44.5 to 49°). A comparison product, albeit slightly lighter, would be Alba condensate, produced in Equatorial Guinea. Closest potential markets for the condensate would be South America, the Caribbean and South Africa. Based on this initial study, the Company believes that the condensate might trade at a slight discount to the Brent crude oil benchmark price ($1 to $6 per barrel).
Note that this discovery is offshore the Falkland islands - not exactly close geographically to PNG or the Far East for that matter !!!The "punch-line" is that they are using a $1 to $6 per barrel discount when modelling the economics of their discovery. (their condensate has an API gravity of 44.5 to 49°). Anyone know the API gravity of condensate from Elk/Antelope ? Anyone know if our discount should be $10, $20, $30, $40 per barrel ? (with WTI current pricing at about $110, if we are selling at $35 we are allowing Mitsui a $75 discount !!!).
http://www.energy-pedia.com/news/falklands/new-153233
In April last year, Borders & Southern announced that it had made a significant gas condensate discovery with its first well in the South Falkland Basin. The Darwin structure comprises two adjacent tilted fault blocks: Darwin East (which contains the discovery well 61/17-1) and Darwin West (untested). The fault blocks are clearly defined by high quality 3D seismic data. Fluid analysis has revealed that the discovery contains a relatively high liquid content. Initial reservoir engineering studies, suggested that 130 to 250 million barrels of liquid could be recovered, with a mid case of 190 million barrels (split almost equally between the two fault blocks). Subsequent studies have shown that, if there is strong aquifer support, the mid case could be as high as 210 million barrels. The reservoir engineering study has also demonstrated that more liquid could be recovered by gas recycling than by gas depletion.
******
A geochemical analysis of the condensate liquid has been undertaken along with a screening level marketing study. Whilst the quantity of condensate available for analysis was limited, and further analysis will be required, preliminary observations indicate that the liquid is typical of an ultra-light crude oil and somewhat heavier than most condensates (API gravity of 44.5 to 49°). A comparison product, albeit slightly lighter, would be Alba condensate, produced in Equatorial Guinea. Closest potential markets for the condensate would be South America, the Caribbean and South Africa. Based on this initial study, the Company believes that the condensate might trade at a slight discount to the Brent crude oil benchmark price ($1 to $6 per barrel).