The string of pearls validation

[jft310]

If Wahoo hits gas then does this not validate the strings of pearls theory. If the theory is validated doesn't  that make all the properties more valuable? Wouldn't a party be much more willing to pay up for what's been found then???To me I think so .

[sydbod]

jft310, have a look at http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01498312 , Slide: 27.

Have a look at all those dud wells around the Wahoo-1 drill site.
I am not saying that you are wrong, or that Wahoo-1 will be a dry hole, but going from past drilling experience from that map, If Wahoo-1 does hit gold, we can all be extremely happy.
I have a low expectation for Wahoo-1 so that I wont get too disappointed, but who knows.
Should as I expect Wahoo-1 be a dry hole, it in no way disproves the string of pearls theory. It would just mean that the string does not extend that far down.
We will know soon enough.

[jft310]

SYD- I like what PET states about Wahoo . He see 90 percent probability of success. I further like Dave Hollands public CC comments. Better looking seismics than Antelope,

We need to drill of course.

[Putncalls]

Total agreed to pay more for more.

[petrengr1]

jft310, have a look at http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01498312 , Slide: 27. Have a look at all those dud wells around the Wahoo-1 drill site. I am not saying that you are wrong, or that Wahoo-1 will be a dry hole, but going from past drilling experience from that map, If Wahoo-1 does hit gold, we can all be extremely happy. I have a low expectation for Wahoo-1 so that I wont get too disappointed, but who knows. Should as I expect Wahoo-1 be a dry hole, it in no way disproves the string of pearls theory. It would just mean that the string does not extend that far down. We will know soon enough.

“Have a look at all those dud wells around the Wahoo-1 drill site.”

Here is some information on those dud wells around the Wahoo-1 drill site. This comes from http://tinyurl.com/mgeqkj7


 “Between 1922 and 1929, the Australian Government drilled five wells on the Popo
Anticline, the deepest of which was 411meters

The deepest well at Oiapu was 845 meters.

The Oroi#1 well (Fig 11) was drilled in 1949 down the plunge of a large surface anticline south of Oiapu and west of PPL 340. The well flowed gas cut water at 131 bwpd. Logs indicated 19 meters of gas pay overlying water at this location.

The Tovala 1 and 1A wells were drilled in 1969 adjacent to the current PPL 340. The wells encountered high pressure gas associated with an influx of salt water in over pressured Recent to Mid Miocene clastics which are predominately mudstones. The more porous units (up to 22%) within this sequence were filled with salt water and associated gas. A gas flow ranging from 1.5 to 2mmscfd was recorded from the Aure Beds. This flow was accompanied by water to surface at a rate of 240 bwpd.


The Black Bass#1 well was drilled in 2005 to a depth of 1,789 meters to test an anomaly that was considered to be a Pliocene reef. This feature proved to be a fluvial sand. However, good reservoir was encountered in the Wedge Hill Limestone which had porosity values ranging from 20% to 22%. This Pliocene reefal carbonate is a primary exploration objective in the northern part of PPL 340. The Black Bass#1 well kicked from a fractured reservoir in the Talama Volcanics. Reservoir has also been encountered in the Talama in the offshore Maiva #1 and the Kapuri #1`wells. The latter well flowed up to 4,800 bwpd.”

Some of these wells were drilled as long ago as 92 years. They started exploring surface seeps by digging pits. Then they drilled some shallow core holes. Then they drilled some shallow wells. Most of these wells were not drilled deep enough to test the zones IOC will be testing. Those wells that were drilled deep enough encountered shows or flows of oil or gas from intervals down dip from Wahoo and/or had high volume water flows that indicate good quality reservoir rock.

As far as I know none of these wells were drilled on a well defined seismic structure that looks like a carbonate reef.

Best of luck to IOC at Wahoo-1.

[jft310]

Thanks PET. Drill ahead time.

[sydbod]

Thanks petrengr1, most enlightening. That makes me feel a lot better. Looks like the properties in that area that KPL have may also be of some value then.

[Palm]

Facts are friendly. Time and technology make a big difference.

[ArtM72]

Thanks, Pet. To me you're the most persuasive guy on the planet.

[Kaliboo]

If Wahoo hits gas then does this not validate the strings of pearls theory. If the theory is validated doesn't  that make all the properties more valuable? Wouldn't a party be much more willing to pay up for what's been found then???To me I think so .

Jft, not sure what you mean by "theory".  Once a depositional trend bearing commercial HCs is shown to exist, lease bonuses and mineral royalties start escalating and can skyrocket as the areal extent and productivity are better and more positively defined.  Every significant trend follows this rule as long as market forces are free to operate.  I would expect that any future sell down will follow that rule.  The obstacle here that hinders it most is the lack of a means to get it to market for several years.  That's a real drag on it