Member Info for bigspike

https://twitter.com/sacgasco/status/986491101203677184?s=21

Wow, 2018 is looking excellent. I’ll have a proper read later. World class asset!

In the past Oil and gas companies have largerly ignored the deeper reservoirs in the scaremento basin because of the technical challenges associated with drilling the well. The main highlighted risks were engineering risks associated with coping with high gas pressures, mud losses through natural fractures and drilling through the hard shale rock formations. "The Early Cretaceous rocks found at greater depths beneath the traditional gas producing layers of the Basin, are brought near to surface by compressional structuring that is continuing to the present day. This structuring, similar to that seen in the fold belt of PNG, creates high stress in the rocks and high formation pressures." Tulainyo 1 identified a fractured anticline crest that caused mud loss, making the drill unsafe due to the associated high pressures formations, the sands could not be tested due to mechanical difficulties, the well was abandoned. With advances in technolgy, it was decided Tulainyo 2 would be drilled from the side with a deviation from the west to bypass the fractured anticline crest. Technologies such as 3D siesmic, fracking and new drilling techniques have vastly improved and this is what has made this possible. Like others have said, larger oil and gas companies don't have to take these risks, they have deeper pockets and choose to deploy the capital on quicker projects that have bigger returns. The Dempsey well was successfully drilled, all targets hit plus additional. This proves the JV partners have an excellent understanding of the basin, the only question they had is, how will it flow? John Begg said the "Reservoir quality has been modelled to be superior at Dempsey than further west at Tulainyo and Alvares", Tulainyo was still drilled despite this, even after the first Dempsey flow test. What does that tell you? Both wells share similar aged formations. In Dempsey, so far all zones have flowed naturally pipeline quality gas, no further processing required. The improved technologies have led to a successful drill that others have thought was too difficult. With dual completion and fracking, a sales pipeline 30 metres away theres a very good chance comercial flows will be generating cash flow soon and sacgasco and partners will proof up their concept. With success in either project, appraisal and development activities are likely to be escalated and the Company�s other Sacramento Gas Basin assets, such as the Alvares Gas Discovery, positively re-valued. GLA....If you dont believe, bail!

CNOOC are financially very powerful, they have many reserves and prospects available to them that smaller companies like eme don’t have! Of course they could drill this licence easily or they could deploy their capital on even larger reserves or prospects that would be more rewarding to themselves, Rathole that’s business! Rathole, would you deploy your capital to drill a 300m barrel prospect or spend exactly the same to drill a billion barrel prospect?

The China plicense is directly South East of the billion barrel+ Liuhua Oil Field complex operated by CNOOC and four recent discoveries to the permits West and South further enhance the exploration attractiveness of the Jade, Topaz & pearl prospects. In Additional, Gaz Bisht has many years regional experience in the Pearl River Mouth Basin with many quality contacts. There’s no way farming this out will be difficult! Once they’ve proved up the oil migration paths, expect to be snapped up pronto.

ill

Another I’ll informed post rathole! Your agenda has been clear from the start.

Pancontinental - Alveras project summary suggests "Despite at least 3 gas columns being present in the original well, mechanical conditions prevented valid flow testing although a partially successful test did flow good quality dry gas at 0.4 MMcfd to surface. Dempsey is almost flowing this through zones 2 + 3. A more recent reservoir engineering review of the well results indicates that natural flow of between 4.0 and 10.0MMcfd could be achievable from these reservoirs if drilled and completed optimally, using modern technology." So Pancon clearly sated the old flow figuares from Alvares, but through modern technology (possibly dual completion and fracking) they have re-modelled these reservoirs to suggest 4-10MMcfd could be achievable!

6000psi is the shutin pressure of the well in the deeper zones, the flowing pressure will always be less. I think this is why they want to dual complete this well because the lower zones may have a higher shut in pressure than the middle section. Commingle the lower zones + comingle the middle / upper zones + fracture all zones = commercial flow.

Petišovci tight gas project in Slovenia, this is by no means an analogue but pre and post frack stimulation flows from a vertical well in tight sands are interesting. Dempsey is planning something similar but from more zones through one well!

Your totally right KOE, it’s amazing how some investors are so short sighted. What GJ has done wrong is illuded investors to thinking this will flow commercially through conventional means, wells like this in the US don’t exist any more. For those who have done their research would know the reservoir quality was questionable and likely to be tight. Dempsey is a stacked reservoir with tight sands. sgc had 7 original targets with a potential of 1tcf, but they found more during drilling. The deer targets were thought to be the larger reservoirs and so far they have proven that these will flow high pressure pipeline quality gas. Finally today GJ comitted to a dual completion well, the first completion will consist of zone 2 & 3 commingled, the second completion will come from zone 4 or the field producing reservoirs. If all of these zones are fracked and produced together there is a real chance for commercial production here and it will come from these under explored deeper reservoirs, so the tank will be quite large! Yes this well has taken far more time than GJ suggested it would, in fact before it comes good it might have its first birthday but up to now, love him or loath him, he is slowly proving up this well.

Zone 2 flow + zone 3 + zone 4 + frack = commercial flow rate, Fingers crossed!

The operator plans a dual completion to produce natural gas from the yet to be tested Zone 4, and previously tested Zones 2 and 3.� Likely commercial gas flows from field production zones can also be tested shortly and may be produced along with gas from Zones 2 to 4. Aggregated gas flows from all of these zones can generate cash flow from the Dempsey well very quickly given the well is already tied into the production system. Production data collected assists the Joint Venture in designing a forward development programme for the well and Dempsey Field to enhance overall production. There is considerable optionality to extract value from the Field, including fracture stimulation.

Seems to me GJ is slowly proving up this well zone by zone. So we now know he’s looking at dual completion with fracture stimulation remaining an option. The combination of fracture stimulation and dual completions makes this a complicated and relatively expensive onshore well, but could be very much commercial. The field producing levels may remain as a back up.

Duster? Dempsey should at the very least pay for itself. Frack permit to enhance natural flow if needed. Gazza how’s that link relate to eme?

I think they will follow the plan and move up the well assessing all reservoirs unless they find a gusher. If no conventional commercial flow is found they’ll return to the best potential zone and frack it. I’m confident of commercial flow with fracture stimulation. There’s hardly any value in the share price for Dempsey at the moment, short term dips are not a concern if your here for China. GJ imo is data gathering to form a field development plan for the Dempsey lookalikes.

hydraulic fracturing has a significant potential in many Northern California gas reservoirs. https://www.onepetro.org/conference-paper/SPE-114184-MS

http://www.valuethemarkets.com/index.php/2018/04/13/echo-energy-shares-spike-gas-flows-argentina-workover-campaign-echo/?utm_campaign=shareaholic&utm_medium=twitter&utm_source=socialnetwork

The last operation update suggested the rig was having power problems so were waiting on new engines, these were expected in April. It’s disappointing there hasn’t been an update.

5 x av daily trading volume!