As we are talking about new cpr data this of course make complete sense. As you take oil out you get a reduction in pressure that pressure will change depending on size quantity and connectivity.
You can do all the 2d and 3d scans you like but this information is without question. If the change is very low in comparison of what you removed then you have something spectacular .
With the oil removed they will now have some very accurate info and this will likely show what parts are definitely connected or not. Still holding strong here with same expectations, realise its about payments but if we get thru the storm the view the other side could be amazing
There are a number of ways in which ERC Equipoise could upgrade the 12.3.2014 CPR numbers:
(a) shift from 3P to 2P, and 3C to 2C;
(b) increase the Oil In Place, by such things as (i) increasing the rock volume, (ii) increasing the matrix porosity, (iii) increasing the fracture porosity, (iv) increasing the fill factor, (v) lower the OWC level;
(c) increase the Recovery Factor, by such things as (i) higher fracture porosity (differential effect), (ii) larger fractures, (iii) lower oil viscosity, (iii) H2S reinjection effect.
So all sorts of tunes can be played on the numbers. IMO the absence of water in the produced oil is highly significant.
When I met Jon the evening before the AGM he struck me as a man of integrity who would improve the governance, management and reputation of GKP: "I want to make this a boring normal oil company" he said. Three months in and he's sticking to his word: New CPR which will not disappoint, payments coming early Sept, improved communications with ALL stakeholders, new chairman etc. This is what proper CEOs does Kozel instead of visiting lap-dancing clubs and taking the **** on expenses.
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