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InterOil's Rig#2 was released from the Triceratops-2 well on August 13,
2012, and is being mobilized to the Antelope-3 drilling location and
Rig#3 is readying for deployment to the Elk-3 drilling location. With
access roads from both the north and the south and a central upstream
development camp in place, InterOil is set to begin drilling two
obligation wells in PRL 15. The Company's Tuna and Wahoo/Mako prospects
targeting seismically defined reefal indications in PPLs 236 and 238 have
matured to the drill ready stage and preparations are underway to access
proposed drilling locations.
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What can one assess from all of this? It appears that they finally were able to conduct testing on the lower level of T2 and have confirmed gas and condensates. Rig 3 should have been ready a year ago, I have no idea what has taken so long for that one.
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Subsequent to the quarter, InterOil completed casing the Triceratops-2 well bore, perforating the casing and testing the lower of two separate sections of the reservoir. DST#10 conducted over a large perforated interval tested gas condensate and formation water. DST#10A, which was conducted over a narrower perforated interval from 5,150.9 feet (1,570 meters) to 5,325 feet (1623 meters), flowed up to 3 mmscf and between 45 and 65 barrels of condensate per million cubic feet through perforations establishing, and with production log data indicating, a gas water contact at 5285 feet (1,611 meters).
Well results support our view that the Triceratops-2 well is on the flank of a shallow marine carbonate and reefal build up. Management believes the reservoir development in Triceratops-2 is significantly better than the Triceratops-1, Bwata-1, and the Elk-4 well, which is in a similar setting on the Antelope reef. It is the Company's view that the results of testing at Triceratops-2 have established gas on rock in the upper limestone and established gas and a separate gas water contact in the lower limestone and established a gross hydrocarbon column height of 814 feet (248 meters) in the Triceratops-2 well. Importantly the gas pressures from both units lie on the same gradient as each other and the Bwata-1 well and indicate a gross gas column height of 1,762 feet (537 meter) in the field.
Our current interpretation of the 87 miles (140 kilometers) of seismic data over the Triceratops structure indicates an enormous attic in terms of height and areal extent to the south, west and northwest of the Triceratops-2 well. Management believes the test results firmly establish the Triceratops structure as a significant discovery for InterOil, its partners and PNG. Having tested only a small portion of a structure, InterOil is looking forward to working with its partner Pacific Rubiales in integrating the new well and potential field data with the aim of designing a seismic data acquisition and six well delineation plan.
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Ass0, it could be they were waiting for the completion of the roads to deploy rig 3 as I think rig 3 isn't helicopter movable (but this is from memory).
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'admin' pid='8040' datel Wrote:Ass0, it could be they were waiting for the completion of the roads to deploy rig 3 as I think rig 3 isn't helicopter movable (but this is from memory).
STP,
You are correct about Rig #3 not being helicopter movable. My recollection is that at the AGM, the roads were scheduled to be completed long ago, but with PNG weather, who knows what might have happened in that regard.
Today's release of Rig #2 is a substantial deviation from the story that we were fed at the AGM.
Raises questions, which will attract spin tomorrow.
VS
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Value, it's also possible to look at it from another perspective. If they felt it was possible to leave the rig at T2 for longer than first indicated (almost surely because of some technical mishap), it's simply possible that their assessment will turn out to be right. They are likely to have more info on what the costs, benefits and risks are in timing the rig move.
Don't get me wrong, it's essential to question, but for most half empty glasses there are also a few half full ones. Some might even be completely full
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'admin' pid='8046' datel Wrote:Value, it's also possible to look at it from another perspective. If they felt it was possible to leave the rig at T2 for longer than first indicated (almost surely because of some technical mishap), it's simply possible that their assessment will turn out to be right. They are likely to have more info on what the costs, benefits and risks are in timing the rig move. Don't get me wrong, it's essential to question, but for most half empty glasses there are also a few half full ones. Some might even be completely full
I get your point.
How full is the subject glass?
VS
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I don't think spin is required. At the AGM and in the presentation the moving of the #2 rig (and 3) were noted as "near term" objectives. Rig 2 had to remain at T2 to do necessary testing to satisfy PRE and IOC regarding the well. Until you get down there you never know what will be encountered. We heard there was extensive tests ongoing, so his really should be little surprise or issue for concern. As far as drilling he next wells they only need to be begun by November, not completed. Phil clearly stated to me when I asked him what is necessary that all they are required to do is initiate drilling, but he wanted to have them complete. He was not concerned about meeting the drilling requirements.
Rig 3 needs to be dismantled and barged up the Purari then moved in via the completed road.
My guess is that until T2 was complete there probably is some mobilizing to be done that is best done so the rigs can be readied for drilling sequentially instead of getting Rig 3 set up then having to remobilize to set rig 2. Cash is obviously tight right now.
Not concerned with this Rig situation; more pleased that the testing has been completed, the PRE deal signed and good results.
Will be an interesting CC tomorrow. Would be nice if we had some news to proceed it
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08-14-2012, 10:59 AM
(This post was last modified: 08-14-2012, 11:16 AM by ArtM72.)
'admin' pid='8040' datel Wrote:Ass0, it could be they were waiting for the completion of the roads to deploy rig 3 as I think rig 3 isn't helicopter movable (but this is from memory).
There was problem completing the well bore according to what was stated at the AGM. Out of round. Soft rock. Customs officials that didn't know that shaped charges were used for anything other than embassy attacks. So? 50 bbl/MMCF sounds like an awful lot of condensate to me. And what was that adjective used concerning the volume of the Triceratops attic....enormous? All that we found out today was that tomorrow the naysayers will have a much harder time ignoring the existence of a second huge find. Will this further complicate the selldown? I strongly suspect that to be the case.
Tomorrow night some might be talking about this little Canadian company possibly sitting on the largest gas reserves ever found in the southern hemisphere. Others to be sure will be complaining about how long it has taken to sell off these "difficult to extract" assets as if this was like selling an abandoned gas station. Kinda makes my cheeks hurt smiling about it.
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'Palm' pid='8057' datel Wrote:I don't think spin is required. At the AGM and in the presentation the moving of the #2 rig (and 3) were noted as "near term" objectives. Rig 2 had to remain at T2 to do necessary testing to satisfy PRE and IOC regarding the well. Until you get down there you never know what will be encountered. We heard there was extensive tests ongoing, so his really should be little surprise or issue for concern. As far as drilling he next wells they only need to be begun by November, not completed. Phil clearly stated to me when I asked him what is necessary that all they are required to do is initiate drilling, but he wanted to have them complete. He was not concerned about meeting the drilling requirements. Rig 3 needs to be dismantled and barged up the Purari then moved in via the completed road. My guess is that until T2 was complete there probably is some mobilizing to be done that is best done so the rigs can be readied for drilling sequentially instead of getting Rig 3 set up then having to remobilize to set rig 2. Cash is obviously tight right now. Not concerned with this Rig situation; more pleased that the testing has been completed, the PRE deal signed and good results. Will be an interesting CC tomorrow. Would be nice if we had some news to proceed it
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