Today's AGM Presentation

[Palm]

WRONG! That was Puts who said Wahoo is a failure; not Kaliboo

[Putncalls]

Please Palm with the rocks. Are you form back East?
You don't think Hession is afraid to "punch thru that shale"?

[Palm]

Please Palm with the rocks. Are you form back East? You don't think Hession is afraid to "punch thru that shale"?

Uhhh, what?

[jft310]

Question for drilling experts ? If we continue to have trouble with this location does it make sense to change location or change the angle of the drill bit  or to bring in Schlumberger type to help?

[Putncalls]

Please Palm with the rocks. Are you form back East? You don't think Hession is afraid to "punch thru that shale"?

Uhhh, what?

I said Wahoo was on hold until "until/unless" safety concerns are addressed.

I also implied that Hession's comments seemed to be preparing the way for wahoo drilling suspension.

No failure comment!

[Palm]

You also said:

"Pet,

Given my expeience with management speak Wahoo is a failure unless his team pulls a rabit out of the hat."

[Putncalls]

Well Palm....
The failure occurs when the rabbit does NOT come out of the hat. Hession seemed to be covering his but with "saftey".

[petrengr1]

OK, let me see if I can put a “happy face” on this. The good news is none of the three exploration wells have reached the “target” zone so they all still have the same potential as they did when the wells were started. They are all still drilling “toward” the casing point above the target zone. We must be very careful until we get to that casing point and get the casing set and cemented in place and the dual down hole deployment valves installed.

The most troubling statement is about Wahoo-1. Dr. Hession said:  “AT Wahoo, there are significant operational challenges in safely progressing through a highly pressured Orubadi seal.
If we are successful in controlling the high pressure, we will continue drilling towards our target zone.
However, this is proving to be very challenging.
Any forward planning or further drilling from here, and I said this before and I’ll say it again, must consider safety as the number one priority."

The question here seems to be “will we be able to drill the well to the target zone?”  They are apparently drilling through an over pressured Orubadi shale zone. Sometimes these over pressured shales have retained excessive water from deposition. This water causes the shales to be more subject to a kind of plastic flow, kind of like “play dough”. So you have to get the mud weight and mud characteristics just right to keep the shale from flowing into the hole and sticking the pipe and/or closing the hole. The other problem to worry about is that there can be layers of sandstone within the over pressured  shale zone which could contain gas or oil. The over pressured shale zones would not cause a blow out but these sandstone layers, which would also be over pressured, could be a source of concern about  the potential for a blowout. The problem to be overcome is to get a hole drilled through this sticky shale and/or sandstone layers down to the top of the carbonate zone and keep the hole open long enough to get casing set and cemented at the top of the carbonate pay zone.

Other interesting points in the presentation may be found at http://tinyurl.com/p3fbxyr page 20. Note that the limestone zone of the Antelope Field has been thrust up over the top of the limestone zone of the Antelope Deep prospect for what appears to be a considerable distance although there is no scale on the map. The point being that the two fields are separated by a thrust fault and the Antelope Deep prospect will be considerably deeper than the Antelope Field and will be below (lower than) the Antelope Field gas/water contact. This means there will be no pressure communication between the two fields if the Antelope Deep prospect does indeed contain gas. Also note that the high point of the Antelope Deep prospect is below a low point of the Antelope Field.

This next point is very significant unless it is a mistake, so I need your help on achieving a proper understanding of what it means. We (or at least I) have always had the understanding that the certification process to determine how much gas Total would pay IOC for related to the Antelope Field. So I found it very curious that page 12 of the presentation says:  “InterOil has the option to call a 2nd certification of PRL15 even after production has begun. This ensures that InterOil is compensated for any additional
gas that is found.” As you know PRL15 contains part of Mule Deer, Antelope Deep, White Tail, Deer, Raptor and Duck Bill. So, am I getting senile or am I just now beginning to see what Dr. Hession means when he says “up side”? Ten years from now we may call for the 2nd certification and be paid for all the gas that has been discovered in PRL15?

How about some of you experts telling us what this means.

Pet,

Given my expeience with management speak Wahoo is a failure unless his team pulls a rabit out of the hat.

your assessment is exactly how I see it.  They may have to TA and come back later with a better plan and better technology.

Here we are trying to solve their problems for them again without knowing a thing about what is going on at the rig site. Does the well have pressure on it? Can they not get the drill pipe out of the hole due to pressure. Can they not keep the hole open? Is the drill pipe getting stuck? Do they need to run a liner and cement it in place as deep as they can get it? How deep do we have casing set already? How many casing strings have we set already? Maybe we have run out of options if the casing size is already down to less than 7”. Maybe they have a situation similar to what we saw at Elk-1 where we had to strip the drill pipe in and out of the hole under pressure and it took months to complete the well. It is hard to guess what the outcome will be when we know nothing about what is happening at the well.

We need to get casing into the hole and as deep as possible, hopefully across the over pressured shale and/or any sandstone zones. If we get it deep enough we might be able to drill the rest of the hole, including the pay zone, without setting casing again until we reach TD.

Since we know nothing we will have to depend on the people at the well site to determine when we have run out of options. When they say the well has been abandoned I will be ready to give up.

[Palm]

Well Palm.... The failure occurs when the rabbit does NOT come out of the hat. Hession seemed to be covering his but with "saftey".

Well Puts...........,

If you follow the thread you'll see that I was referring to a comment made by Getit who said that Kaliboo stated that Wahoo is a failure, when instead it was you who first stated it.  Kaliboo made a blanket statement that he agreed with your assessment, but it was you who first used the word "failure".  It was mostly a chance to rib Getit with his own "WRONG!" statement, but............. it............... obviously.......... went.... awry.   Sigh..............

[Getitrt2]

This is probably the better thread on which to discuss the three wells, in spite of some of the crap. I guess everybody is pretty frustrated at this point, especially given the stock over reaction and the renewed opportunity for more short manipulation.

Palm, I'm glad you enjoy "ribbing" me so much. Ha! You're welcome, and I'll stretch and try to take it as a compliment. Thanks!
Sigh.....