Reservoir Drive Matters

[Stavros]

Pet - Based on this statement from GLJ, will Ant-7 likely provide essential information towards defining drive type?

"This second option would require a regional, north-south oriented permeability barrier to the west of the structure. If this was the case, then a strong aquifer would exist."

Li’oilady- I don’ think we will learn anything about the type of reservoir drive we have from Antelope-7. We have always known that we have a fault bounding the field on the west side. As I have said before I think we are too far from the mountains to the north and we probably have many permeability barriers (faults) between Antelope and the mountains, so I do not think the a higher recharge area is a viable reason to expect a strong water drive. I do not know anything about a regional fault to the west but I would think that if one exists that GLJ would know about it. I prefer the sealed fault block theory to explain the 460 psi over pressure that we have in the Antelope aquifer. That would give us a depletion drive instead of a strong water drive.

To change the subject a bit if you look at page 18 of Phil’s presentation you will see what he has to say about the drilling of Antelope-7. I have posted before that if we drill the well too far west we might have a dry hole. Phil’s theory would be to move the Antelope-7 far enough east to be sure we are going to hit the reservoir on the east side of the fault and then, soon after penetrating the top of the reservoir, drill a horizontal hole toward the west to see if we can locate the fault. This would allow us to find the fault without drilling through it which Phil says will give us drilling problems. Sounds like a good idea to me but since they have already built the location I doubt that they will change it at this late date.

Perhaps they can drill A-7 at the currently contemplated location (where they already cleared trees and flattened the area) and then drill horizontally towards the East to find the fault if they miss the Reservoir.

This would be a less desirable option than your/Phil's option because it would not pinpoint the top of the Reservoir.

ADDED: As subsequently noted by Cyber, this is less desirable for IOC Shareholders