OSH drilling report

[Spartina]

Bdah over @ IV posts latest drilling report from OSH looks like a dry hole at this point. Good for IOC, Oil Search/ Exxon still need gas for trains 3 and 4 and 5 and 6.....down to 3228 meters, most of the target sands have been penetrated, No hydrocarbons.

[Stavros]

I had heard about a month ago that an offshore well drilled by OSH was a duster.
Is this onshore or offshore Spartina?

[petrengr1]

Stavros- This is the offshore Flinders-1. This is new information and was not known a month ago. I heard the same but must have been inacurate as this is their first well. See http://www.oilsearch.com/Investor-Centre...ports.html

Also see http://www.oilsearch.com/Media/docs/1305...f71d-0.pdf page 33.

Might have been better for us if they had found oil in these sandstones. However, these sandstones are of a younger age than our Pale/Subu so it probably has no bearing on the IOC leases.

Their next offshore well is Hagana-1 which is the same type of sandstone play. If Flinders-1 is a dry hole they might be smart to skip drilling the Hagana-1 which appears to be a near-by structure, sandstone but lower than Flinders-1.

[Palm]

Also interesting is their presentation from yesterday's annual meeting. On their numbered slide 32 they discuss their exploration and future LNG plans. They mention a possible new stand alone LNG plant and highlite their exploration licenses which encircle IOC. They also show a big red dot on EA, and highlite Kerema. Then also show their offshore activity and show where they are running onshore seismics. Only makes sense that our project is in the Total/OSH crosshairs.

Thanks Pet for the info on the difference between their offshore play and our formations. That likely would have become fodder for shorts.

http://www.oilsearch.com/Media/docs/1305...f71d-0.pdf

[Palm]

BTW here is Thursday's drilling report. Page 2 is on the Flinders play and they state, "During the week, a number of sand bodies were intersected at the target level, but with no significant hydrocarbon shows. The sands will be fully evaluated once total depth is reached. Drilling progress for the week was 511 metres." Sounds like they have a ways to go yet but nothing at the target area doesn't look good.

http://www.oilsearch.com/Media/docs/1305...67d1-0.pdf