Member Info for abzzba

Not sure if anyone is aware but Mongolia refinery operator appears to hold the PSC licence for the as yet unexplored Davst XXXI field, reports are it will be explored this year.

There is also some confusion if the refinery operator is a subsidiary of Erdenes Mongol LLC, from what i can see Erdenes Mongol LLC was established in 2007 as Mongolia’s principal state owned enterprise responsible for representing the government’s ownership in matters involving strategically significant mineral deposits so it may be they simply oversee the refinery operators operation on behalf of the government.

Either way its worth keeping a look out for any drilling operation in the Davst XXXI block.

Couple links below where Davst XXXI is mentioned.

Makes little difference to MATAD.

mongolianminingjournal.com/a/74968

https://en.mininginsight.mn/index.php?newsid=308

info on Erdenes below.

https://projects.gbreports.com/mongolia-mining-2024/erdenes-mongol-interview

Few bits of interesting info in the document link below,

https://openjicareport.jica.go.jp/pdf/12395349_01.pdf

Below shows the composition of oil products planned for the refinery.

Product Annual capacity (liter)

Propane 9,804,000

Butane 37,931,000

Gasoline 546,207,000

Jet Fuel 103,226,000

Diesel fuel 1,029,630,000

Fuel oil 17,690,000

Quite sure we could have a specialist radial drilling company on-site quickly, but at what cost if they have to mobilize from China, MB as usual being prudent and waiting for them to arrive and conduct Petro China work thus considerably reducing costs for MATAD.

Could almost say MB is a "mean" machine.

Trump said a deal is close.

Rubio says it could take 'Weeks'.

My thoughts are it will take months and roll over into next year.

FTSE, yes H1 could be radial drilled, as for production increase i will not be drawn but the whole point of RJD is to increase production, plus with the new 3d seismic we may get a better idea of where the oil at GOBI has migrated to so radial drill of GOBI could put us much closer to the sweet spot.

The real beauty are the costs, H1, H2 & GOBI are already drilled, to go back in and radial drill should not be that expensive, we are waiting on costs right now, see question 3 below from the recent Q&A.

.............................................................

Question 3:

What would be the cost, timeframes to implement and potential increased flow upside to any prospective production enhancement techniques, such as the radial drilling?

Jerry Answer: As, I said a couple of times now, we are waiting for costings, for the contractors for radio radial drillings. There are experienced contractors available in China, so we could potentially, mobilise quickly if a small job in, Mongolia were to incentivize them, and or we can combine this with other work, that we can do. Regarding the aspiration for those work, well, clearly it's depending, on the, on the type of technology we deploy, and the contractor, but the contractors sort of showcase presentations and documentation, so it should say that actually rates of up to 1,000% increase, can be achieved, but obviously that's their best case scenario, but I would expect several folds over of increase in production if the technology works.

RJD good reading at the link below.

https://drillers.com/radial-jet-drilling-rjd-a-full-overview/

For the uninitiated (kr & crew) its fairy obvious MATAD are now looking at radial drilling as a way to increase production, to-date we have only ever drilled vertical wells, with a vertical well we drill "straight" down and we collect oil from the reservoir through the section of casing that passes the pay area, if the pay area is 8m then we collect oil from the 8m area the casing passes through, with radial drilling we again drill a vertical "straight" down to the target depth reservoir but then using specialist jetting equipment we drill 2" holes horizontally, these horizontal holes can extend upto 100m from the casing in any direction we want, we can drill as many as we want though the figure is normally 4 horizontal drills at 90 degree angles, this has the effect of collecting oil as far as 100m from the casing and can result in as much as 1000% increase in production that a normal vertical well, consider 4 horizontal drilled bores each 100m long hence we collect oil from 400m section of the reservoir, not quite as simple as this but i have tried to keep it easy to understand.

Radial drilling link below.

https://www.youtube.com/watch?v=_gGhFJsU8cM

Kev, loved reading your calculations in part 1, made me chuckle, bit simplistic but exactly what i would expect from you based on your previous posts, you do not mention whether this is based on vertical wells, vertical plus radial drill or horizontal drilled wells, also no mention of injection wells to boost reservoir pressure, once we have several wells producing in the same local then we introduce injector wells which boost reservoir pressure and increase production, you mention you based this on an average of each well producing 100 bopd, yet our current 2 wells are producing more than that (without aid of injector wells), you mention a sales figure of $70 and $40 net, that relates to shipping via PC and selling to China, assuming the refinery is onstream February 2028 we should be selling to the refinery by late 2027, once we are we can up the net per barrel by around $12, i could go on but sure you can see by now your figures are pretty much junk.

OVL are awash with cash for overseas ventures, got to be in the running.

https://scanx.trade/stock-market-news/corporate-actions/ongc-backs-ovl-s-overseas-expansion-with-412-million-guarantee/11974770

I33, good link below to gen up on seismic but keep in mind even the 2d seismic we have is decades old, bit like comparing a basic 20 year old inkjet printer to a photo quality modern printer, much less ambiguity when it comes to Interpreting results.

https://www.silverthorneseismic.com/understanding-2d-and-3d-seismic-acquisition-whats-the-difference/

The 3d seismic we got from Petro China is over 15 years old and covers only the northern border of our block XX which is adjacent to Petro Chinas block XIX, basically Petro China 3d overlapped into our block 20, as you say we also have ancient 2d seismic, fact is there have been huge advances in 3d seismic in the last 15 years so having up to date 3d seismic is a huge boost , much higher resolution and less uncertainty when it comes to complex geology as we have in Mongolia.

Its a win win whether we go it alone or use that as a selling / farm in sweetner.

SP, i really did not expect the "peace" plan to go anywhere, i expect these high oil prices will be with us well into next year and maybe long beyond that.

PS, i see you had a spat with kr (aka KevinRound) the guy that said our wells had at most a 5 year life span, the guy that said Sunsteppe would be worth pennies to MATAD, the guy that did not realise our already drilled wells were already cased to bottom and the same guy that said he doubted MATAD would reach a "penny", clown.

Brent creeping up again, now $97.52. How long can these countries keep tapping their reserves.

https://oilprice.com/Energy/Oil-Prices/How-Long-Can-Demand-Destruction-Keep-a-Lid-on-Oil-Prices.html

Dozzawba, i agree 3d seismic is worth while, more so we only need to pay a fraction of the cost this year, it will help MATAD and will be a huge boost to any prospective partner or potential buyout of block XX, question 27 of Q&A, MB states the seismic we do have stops short of the Gazelle updip, this is the area he mentions in question 32 that he would choose for the next drill, as i said earlier today i would rather see Gazelle 2 drilled rather than GOBI well test, even if GOBI is a producer we know we have not hit the sweet spot due to the oil migrating so its unlikely to be a huge producer and if it is a producer we still need to complete it.

I would rather spend bit extra drilling Gazelle 2, it has 45m pay area as opposed to Gazelle 1 which has an 8m pay area, Gazelle 2 should not have water issues and "i feel" G2 could be by far our best producing well (200 - 350 bopd)

Also keen to see H2 radial drill, H2 is already drilled & completed so carrying out the radial drill is fairly low cost operation, if it means H2 produces its well worth spending a couple hundred thousand (175,000 quoted by some).

Hot wax wash of H1 has been put off as they do not want to lose production while oil price are high plus they obviously feel the wax is not overly impacting production.

Above are my thoughts, as previously mentioned i am not drilling or production engineer

Quelfromage1, your quite right in saying this could affect Saudi etc and yes i am aware these pipelines could be blown up, the result being oil prices would go even higher and be with us for years to come.

Proquo, if it were up to me to decide on well test GOBI then complete if productive OR drill Gazelle 2 i would choose the Gazelle 2 option, money wise Gazelle 2 is more expensive as it still needs drilled but i think the returns are there to warrant it, i could see Gazelle 2 being by far the most productive well we have, keep in mind Gazelle 1 is drawing oil from an 8 m section while Gazelle 2 has a 45 m section to draw oil from plus the fact its unlikely to pose water issues, just my thoughts.

Happy to say i understand that MB cannot force the interested parties to sign a contract, he cannot force PC to sign the sales agreement, he cannot and could not force local governors to grant permits, he can give timelines, often these have not been met, but that is not directly attributed to MB failing or misleading.

And important to note IRAN are quickly running out of storage for their oil, once storage capacity is reached they have no choice other that start shutting wells in, SenatorP, posted an informative video link a few weeks ago which went into detail about the problems of restarting wells after they have been shut in, many shut in wells will never restart and others might restart production but at much lower levels.

"It seems as if the current Farm-In party is having cold feet about investing in the Petro Matad Block XX oil field?",

i would have thought just the opposite, if the interested party wants now to review the seismic i should think that means they are still interested, they could have left the table anytime in the previous months.