RE: Drilling and Tie Back Costs...14 Oct 2018 21:49
IJWT (and Biffa),
" However, it may come down to something RT said (I think at the AGM) which was along the lines of during the first 12-months of the EPS there would be no drilling on Lancaster is it could interfere with the results they are trying to determine as a data set. Given the potential for connection, they may be shy about drilling Lancaster also but why not come out and say so."
Essentially, and looking at the recent presentation, I think 'they have come out and said so'!
I can fully understand why there will be no drilling on Lancaster itself during the initial data-gathering phase of EPS. Despite the well-pressures being mind-boggling to the 'layman' (1200 psi or so), the data-gathering involves seeing how the two wells are 'talking to each other', and that might be in increments of 10 psi or so. Not sure what margins of error are built-in to the instrumentation at work. But probably of that order. And having a well being drilled nearby could skew those figures.
But again, if the 'connection conjecture' just happens to be true, even doing something on Halifax during those early months could have an effect, despite the 35 km distance. Pressure is a funny thing. It transmits over huge distances, and of course the denser the medium, the faster it travels. Hey! Today where I live has been grey, gloomy and raining. Stick-one's-head-in-the-gas-oven weather. With occasional thunderstorms. And being a rather odd sort of person, whenever I see a flash of lightning, I satrt counting the seconds until I hear the thunder. Then I know how far away the lightning struck, approximately. It's a habit. But what am I actually 'hearing'? It's a transmitted pressure-wave carried through the air.
OK, I'm rambling... But I think I can see why Hurricane doesn't want to do any GLA drilling in the near future.
So as a corollary, one can only deduce that the PBLJ options were probably for GWA, anyway. Which will now be done by the TO Leader. I've been keeping my eye open for the TO fleet status report to be published, but it's still not out yet. Could be in the upcoming week. But my bet is that the PBLJ options have been shelved, the rig will quite possibly go into dock instead, and the Leader contract will have superceded the options. At no 'cancellation cost'.