'hirosan' pid='77098' datel Wrote:SINGAPORE and PORT MORESBY, Papua New Guinea, Nov. 2, 2016 /PRNewswire/ -- InterOil Corporation (NYSE: IOC; POMSoX:IOC) has been advised by Total E&P PNG Limited, operator of Petroleum Retention License 15 in the Gulf Province of Papua New Guinea, that it has begun drilling the Antelope-7 appraisal well. The well is designed to provide structural control and reservoir definition on the field's western flank. It has a proposed total depth of around 2,300 meters (7,545 feet) true vertical depth below rotary table and is located about 1.45 km west-south-west of Antelope-5. InterOil holds a 36.5375% interest in the well. Total E&P PNG Limited has a 40.1275% interest, Oil Search has 22.8350%, and the remaining 0.5000% is held by minority parties.
This is good news; another infamous IOC/Total milestone which will have its own story that develops long after IOC is no more. Perhaps PET can comment further. They have provided only the TVD (true vertical depth). That's not the MD (measured depth). TVD is the shorest distance straight down from surface to TD. MD is the acutal length of the wellbore measured along the borehole. Unfortunately (and not surprising) they have told us little about the well plan and objectives.
1. Structural control: Think of that as dimensional and location parameters such as top and bottom deptth, thickness and dip of the reservoir.
2. Reservoir definition: You get this with logging, rock sampling (mud logging, wireline cores, whole core from drill pipe core barrels), and flow testing. They need net pay distribution, permeability thickness (kh), porosity, water saturation, type of hydrocarbon present (oil and/or gas), contacts presence and depth (GOC, OWC or GWC), reservoir temperature and pressure at various depths, etc, etc.
For us the big ones if the reservoir is present and full of gas would be, is this in hydraulic connection with the rest of the wells AND to what degree is the reservoir drive mechanism a water drive vs. depletion drive. With gas reservoirs you want pure depletion drive as that provides the highest recovery efficiency. This latter one is my biggest concern and as we have discussed in prior postings, it seems the resource (reserve) numbers have been cut in the last year, favoring more of a water drive impact (at least by the consultants hired by OSH). It might take a very long production test, producing huge volumes of gas to give a correct answer; perhaps too much to be feasible in a production test.
If I had one question or demand of management it would be for them to explain what they are doing to refine their understanding of the drive mechanism and thus recovery efficiency in the plan of this well.
Good luck to all,
Kaliboo
