Phil's Elk 3 coments

[sageo]

Pet 1  or Petro - Good am,gentlemen . Would either of you have time today to expand on Phil's coments today about Elk 3? Such as "if  E 3 hit a big commercial payload" and "we will test the lower porosity section in the Elk reservoir" . Sounds like we are going deeper than other Elk wells and looking for more "goodies". Thanks guys!

Pet  - I just read your reply to Art . Answers my questions !! Thanks much.

Sageo-  Note the quote from PNG Industry News is: “Mulacek answered questions regarding the kind of impact there could be to ongoing talks if Elk-3 hit a big commercial payload.”

This is not a quote from Phil. Phil did not say “big commercial payload”.

We have never drilled a well in the “Main Elk Fault Block” above the gas/water contact. Elk-1 was drilled into a different and higher section of the reservoir and did not penetrate the main fault block or reach the gas/water contact.  Elk-2 was in the main fault block but almost all of the drilled section was below the gas/water contact. So Elk-3 will be the first well in the main Elk Fault block to be drilled from the top of the reservoir to the gas/water contact. As stated below I think we will have about 1650 feet of fractured limestone above the gas/water contact at Elk-3. If we hit some reef porosity, since we are moving up dip from Elk-2, that would be great but I have not heard that suggested, even by Phil or anyone else at IOC.

I, like everyone else, am hoping that this latest story in PNG Industry News has nothing to do with the pending announcement of our new partner. I am hoping that we get “the announcement” shortly and certainly long before we spud and/or drill Elk-3.

In order to spud Elk-3 they will have to bring back the Contract Services firms i.e. Schlumberger, Halliburton, Weatherford, Simmons (Contract Rig labor) etc so that will take a little time.

  Pet - A big "thank you" !