Oil at $60bbl would be worth far more than gas at $3.07 per MCF.
"Under the terms of the gas sales agreement in Tanzania the gas will be priced at around US$3.07 per thousand cubic feet (it is contracted at US$3 per mln British thermal units)."
Say 1Tcf with 50% recoverable at $3.07 per mcf is $1.5BN
Or 500mmbbl with 50% recoverable at $60 bbl is $15bn
I'm a firm believer that oil is up-dip at N3 or further up-dip at Namisange, or both. Gussow's theory states that gas will first push water up-dip, then when the water is gone it will push the oil up-dip, finally gas itself will move up-dip, chasing the water and oil further up-dip.
So we have gas and oil shows offshore right through to N2 in the same fan system. The water is well gone, but Mike Rego thinks there's 94BN barrels of oil that's been pushed up-dip and that's only 10% of the possible oil from the gas reservoirs that he says could still be trapped, he says it's a conservative figure.
By using geological information about the area and what they've learned from drilling elsewhere. No one knows for sure how much oil there is in a given area until people drill there, but geologists can make an educated guess. First, they examine seismic and aeromagnetic data to determine the likely features of underground rock formations, and compare these estimates with what's been found in nearby wells. For oil to accumulate underground, there must be what geologists call a "source," a "trap," and a "reservoir." Source material is rock with organic content that can be converted into oil or natural gas ("cooked") by heat and pressure. Generally, the oil will just disperse, seeping up toward the surface over millions of years. But if a hard, dense material forms in the right shapeunderground (say, an inverted bowl), it can trap the oil in place. Even so, there won't be very much in the trap unless the substance under the bowl is porous enough to store the oil. These reservoirs can consist of rock that contains cave-like bubbles, or of a porous material such as sandstone, which can soak up oil like a sponge.
Geologists can measure the density of underground rocks by sending radio waves into the ground and measuring the speed with which they reflect back to the surface. This can be done quickly and easily from a plane (which obtains what's called "aeromagnetic" data), or it can be done from the surface.
But far better data comes from seismic waves. Surveyors can send vibrations into the earth using a vibrating ("vibroseis") truck. An array of sensitive geophones picks up readings which computers then use to produce a map of the underground terrain. In modern three-dimensional seismic imaging, the data are converted into a textured image that can be rotated and examined at multiple levels.
Interpreting seismic maps is something of an art. You could look at the 3-D data on a regular computer screen, but some geologists use 3-D projectors and glasses to inspect the graphs, and others wear virtual-reality helmets.
Tarry, personally I love Scotland. Whatever the weather. Have been lucky with the weather over the years, but even when it is "dreich" it doesn't spoil it. At the end of the day, if I wanted to lay on a beach I would go to Spain. Much prefer lochs and mountains....beautiful. Totally agree with your last sentence. No smash and grab here thank you.
Hah! Ivor, you're right! "Can't believe it's not butter", that must be from the amuse gull-ible course ;)
I can see why some might be frustrated there's a form of torture that uses the drips of water on your forehead to wear you down (.... just a word of warning though to anyone planning that on a Scotsman: we train to defend against water drips on our foreheads 365 days a year :D )
Anyway ... no-one is dripping water on us and as many have already said given the fall from 7p I'd far rather we have a slow sustained rise underpinned by fundamentals and regular news/development updates than a smash and grab by rainbow chasers.
Hi NorthernMagic, if the rumours of N3 in July are accurate, then I suppose the rig would be mobilized at the end of next month? I will be in a remote part of the UK in early July with next to no signal! Knowing my luck, everyone here will be watching the sp hit 10p, and I'll be wondering if there has been any news yet! I'll just have to find a hill and stand on tippy toes!
TB drip drip exactly the way it should be done to create a sustainable rise. Keeping the company in the news is the important thing right now. As TT said earlier it laughable that some are complaining of no spike when the same were complaining about the last one :-). Imo the last two RNS have come on time as had been indicated by JBs words if people had listened. We have now got numbers with a potential double increase on that and my reading is that that potential in NT2 will materialise around the 1tcf mark. Softly softly catchy monkey, all is good
Same here ivorgasleak. I think they have kept the reserves news separate in one RNS and we will hear more of their plans in time. The big positive I'm taking is Jay's continuing mention of expanding asset valuations and implicitly a growing sp. GLAH
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