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Jof, Brom, quite right. I've just read back over some earlier presentations and having exposed my ignorance, I'm happy to be corrected. JofHoggit, I offer my apology. ATB.
in May DW advised that FO would formally commence 2H2019 pre core samples but there was informal interest, I would love to be surprised but suspect that any deal would be not be the best we could get, positive pressure core data would hopefully give us a better chance. Hope the September presentation will give more meat.
Suppose they could farm out the unconventional in zones B or C. If successful zone A would be more valuable with core samples
Dogstain possibly, if the FO is dependent on results from pressure cores then that could be the earliest timescale for a deal, however if the FIB-SEM analysis is successful and there is sufficient data from regional wells then perhaps the pressure cores will be part of the deal, in any case drilling unlikely before 2021 based on tundra conditions.
Perhaps we will get more information / clarification in September
If this turns out to be the plan then no unconventional farm out until 2H 2020
APOW if we are to flow test then we possibly be stimulating the rock which will probably involve some fraccing, the plan for Winx had it been successful would have involved stimulation pre flow test.
Perhaps some of our oilers have views on this.
Ooops
I realise this is a different drill to Charlie-1,
should be:
I realise Charlie-1 / Malguk is a different drill to Icewine-2, etc
PB designed the Icewine 2 drill to be multifunction in respect of Vertical and Horizontal drilling.
DW reduced the cost by having only Vertical. I don't think we know these cost comparisons.
I realise this is a different drill to Charlie-1, but the point is, Drill Rigs can be designed to handle the functions requested by client.
So, PMO cost for Charlie-1 is $23million?
Normal cost for conventional vertical only is $15million (eg Winx)
So, maybe this PMO Drill has some favours built in?
Equally, there is suggestion Charlie-1 drill will look for up to 7 conventionals, will this add $8million?
Remembering, Winx was looking for 3 or 4 conventional layers.
Also note, new well is called Malguk-1 appraisal well (regional word meaning...?)
Perhaps we should Email DW for clarification on drilling to the much deeper HRZ.
My understand is, the fracking 'extras' happen after Rig is removed.
And bring in the pumps and water/chemical trucks.
Just inviting discussion. There could be a lot in this Magaluk project.
Phrontist
But JofHoggit, the fracing crews wont be there anyway, it's a different discipline.
ATB.
I cant see it states this in the RNS but the next oil rush article suggests... 'It’s important to note that the farm-out does not include the unconventional HRZ shale play – that 0.8-2 billion barrel prospective resource is still with 88E. The HRZ will also be logged and sidewall cores taken in the full carry well with PMO – so that is a bit of a bonus to 88E as well.'
Would that be a paid for article? So bar the estimates on value, would that info have come from 88e directly??
I'm just wondering if we are to take logging data and core samples for the HRZ from the Charlie-1 well surely it would be worth 88e stumping up a bit off cash to cover the costs of giving the HRZ a tickle with the old fracking stick. Seeing as the ice road will be in place and the fracking crew's there anyway....
https://www.nextoilrush.com/88e-partner-1b-premier-oil-north-slope-farmout-drilling-q1-2020/?gclid=CjwKCAjw44jrBRAHEiwAZ9igKD89gTWStBrLcvQ9awKNtZhSYWPovwkhfZao9y2aZxFwsUIF134_jxoC2JMQAvD_BwE
"Plus overnight in London in its investor presentation, PMO was already referring to 'first production' timelines before the well is even drilled - so there is a high level of confidence that they are onto something ".
"So on success, and these rough estimates, that would be US$15M for circa 1.75% of 88E, and an implied 88E valuation of US$860M - 8 times greater than 88E's current market cap.