(12-15-2013, 11:22 PM)Palm Wrote: Is it possible Spartina that any structure within PRL15 which is in communication with the Antelope Field would be that much less expensive to develop making it more valuable? Also, since they only get one well to make it or break it, the Discovery Bonus for that structure would be somewhat limited. So if Bighorn is a 10T structure, they might get a P50 of 4-5 Ts if the hit a sweet spot. Nice big Discovery Bonus but somewhat limited.
I don't understand how any single well can be used to evaluate the size of a field unless I presume there is a long term flow test which the government is unlikely to sanction. Nor should they. So the question is just why would Hession accept a single well to determine the size and value of a field for the purpose of the discovery bonus? Common sense dictates that the single well should be a discovery well and the size of the bonus should be based on the resource find after full delineation, not the P50 based on a single well .
If IOC's bonus for a new PRL15 discovery is based upon the reserves identified by a single well then Hession and his experts failed stockholders miserably in a way that begs the question just whose interests is he looking after?