6k filed- Flow Testing Begins

[Thylacine-2]

If the flow test shows connectivity for Ant 4, the gas/water contact will be the same as everywhere else in the field, and there probably isn't much to be gained by the pressing the issue with overcoming the mud losses and drilling deeper.

[davidhmtk]

If the flow test shows connectivity for Ant 4, the gas/water contact will be the same as everywhere else in the field, and there probably isn't much to be gained by the pressing the issue with overcoming the mud losses and drilling deeper.

The test is in 2 parts, as I understand it, with a first part of up to 12 days, then they stop to let the well refill and test again.  Logically, the connectivity is known soon, and since the testing started half a day ago, probably is already known ( and the stock is rising ).   The amount of pressure drop over time will tell how extensive the connected field is.  Corrections would be appreciated.

[jft310]

Was told by IR this AM
Flow test could take 8 weeks . This type extended test has not been done before . No drop in pressure first 2 days of test .
Ant 4 is mostly rig related . The fractured bottom means good permeability and porosity .
The group will decide what to do next . There are ways to incorporate Ant 4 in these tests .
Ant 6 they hope will complete by the end of Aug
The reservoir engineers will start work after the flow test and then incorporate Ant 6 results into their work . The official clock per SPA starts after Ant 6 and they have 90-145 days to get it done . Work starts though after flow test.
The concept selection will start with location and the sizing will depend on flow test results . One person still says 5 range for T's but no one knows .

[Tusker]

there is also a picture of flare on interoil web site:

http://www.interoil.com/

link to release:

http://www.interoil.com/investor-relatio...ng-starts/

Antelope #4 showed 33 meters of dolomite.   There was some question about dolomite being present months ago.  Very glad to see that one answered.  Will find again at Ant#6.

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Tusker- Frankly,when we started drilling Ant 4, I thought if we found any dolomite( or maybe a few feet) at that location in the reservoir,I would be very surprised and happy. Now,109 feet(if the old brain is working right) to me is awesome ! With connectivity (??),I wonder what other great "things" we could discover in PRL 15 ? Maybe Ant 6 WILL be better

... other great things.... well than, take a wonder with me to Antelope South.  As you can see from previously shown surface topography, Antelope and Antelope South are highly similar. If we find zones of dolomite in Ant South, "giddy" with be the understated response of the year.

Cheers

[Gator]

"One person still says 5 range for T's but no one knows ."

Are you trying to say Anteolope has only 5 tcf of gas?

[Paciottiman]

"One person still says 5 range for T's but no one knows ."

Are you trying to say Anteolope has only 5 tcf of gas?

My question as well.

[jft310]

Not me saying that , one of the team members has always been low . Everyone should know who that member is . Then we have experts from GCA at 7.1 , GlJ at 9 plus and knowledge reservoir at 9 plus . Then Henry Aldorf at 12-16 T 's. And the GCA requirement of 2 more wells showing a larger formation in order to raise their current estimate . That's actually happened both well successful . More assets .

[davidhmtk]

"One person still says 5 range for T's but no one knows ."

Are you trying to say Anteolope has only 5 tcf of gas?

What the engineer said ( as I read JFt's note ) is that there is a range of 5 Ts between the lowest outcome and the highest.   No bottom or top number given.

[jft310]

Total pays on P-2 numbers the lowest of which is 7.1 T's from GCA . Their P-1 number was 5.3 T's but they also said they could raise their numbers with 2 more well results . Today both wells Ant 5 and 4 have positive results which means GCA must raise their numbers if chosen to do another report . So for gas alone no liquids the range has been 5.3 to 9.1 T 's . That's old info not new .
The impact of the new wells is not reflected in anyone's current numbers which must be raised to some degree.
Who will be doing the work has not been announced . Work begins after the flow test for the 2 reservoir engineers .

[petrengr1]

On March 31, 2015 they were at a depth of 2,134 meters at Antelope-4. So they did not make any progress in the month of April before suspending drilling. They lost circulation at a depth of 2,110 meters.

“Cores were cut in the upper part of the reservoir as planned, resulting in a recovery of 33 meters of dolomite.”

I think they have drilled about 148 meters (485 feet) of the upper part of the pay zone. I believe they started coring at the top of the pay zone after setting 9 5/8” casing, so probably most, if not all, of the 148 meters were cored. We do not always recover 100% of the section that is cored. They say they recovered 33 meters of dolomite. No mention is made of logging so I assume no logs have be run yet. If that is the case we do not know how much dolomite we have. Since they only drilled 24 meters after losing circulation I believe they were drilling with mud. We can not afford to drill with mud while losing all  of the mud down hole so we have to either stop drilling or convert over to managed pressure drilling and switch from mud to fresh water. Since they elected to suspend drilling I believe this rig is not equipped to employ managed pressure drilling. It appears to me that they need to return this rig to the contractor and move another rig on to this well to complete the drilling. We only need to drill about another 500 feet to  reach the gas/water contact. I expect to have about a 1,000 foot gas column at this location. I assume they installed dual down hole deployment valves in the 9 5/8” casing so with the proper rig and blow out prevention equipment they can safely proceed to drill to TD with managed pressure drilling. Since they lost circulation and suspended drilling the well now has pressure on it. With down hole  deployment valves in place they should be able to pull the drill pipe and run a pressure recording device so that Antelope-4 could be a part of the connectivity test. They could even flow test the well if they so desired.

I previously told you that the GLJ maps indicated little or no dolomite at the Antelope-4 location. For your information Antelope-1 had about 235 meters of dolomite at the very top of the zone, Antelope-2 had some high porosity limestone above about 250 meters of dolomite and Antelope-3 had about 150 meters of dolomite with some limestone interspersed within the dolomite section. So the 33 meters (108 feet) is quite a bit less than the other 3 wells but still a respectable amount. We could have more than 33 meters after logging.  I do not recall that we have been told how much dolomite they found at Antelope-5.