Member Info for British_Mike

GRH - If the result is good, why have they broken the tight hole status before running wireline? Th drill was to be completed and wireline run before releasing results... unless circumstances changed (they had to update the market as soon as they knew it was an uncommercial well location) . Paul's statement today you could sense the disappointment.

it was like BPC saying Pers#1 well had a "working hydrocarbon system" and was a good result... then moving away from Bahamas.

JohnHenry - If you want to buy all my shares at 10p each (40%) discount on yesterdays close - you are most welcome.

JohnHenry -
"MOU-1 has been given a "tight hole" status and therefore, unless circumstances dictate otherwise, there will be no more information released until wireline logs have been evaluated."

Wireline logs have NOT yet been evaluated... they released the MOU-1 update because there's only trace gases... circumstances have changed for the "tight hole" status.

The word "commercial" was not mentioned. Sounds like a duster wuth gas traces.

Indeed Skittish... as I mentioned before, why drill the other prospects to test different traps when they could appraisal dril Tai and get it proved up and commercially viable (we have the drill to appraise with). That would underpin the market cap and allow a placing at £2 to continue drilling after Tai is proven up. I doubt the drilling company are in a rush to move the drill on to the next customer when they have shares as part-payment with HE1.

Skittish - wouldn't they need to prepare a new drill site to appraise Tai? Surely the appraisal wells are step-outs to prove the whole fan(s) volume?

Ignore post... was on the wrong page of threads and not see the replies.

So much for the 5.5 layers of pipe left in the 10k stack.

Thought they were only drilling in the day? ... surely 24h drilling be at 1200m over the weekend with no stopping to test during drilling.

This is kinda what I was saying yesterday. In the interview DM quickly bypasses the 400m pay zone area details saying volume stronger deeper down. Although the drill will take longer pulling out pipe and wirelog at 400m - this is the maiden well, surely all zones tested as they go down in case of well collapse or the deeper drilling upsets the higher targets etc.

Once the first well was detailed inspected at each stage, the next well could be drilled to TD before reporting anything. The 2% gas show might have been a very small pocket of trapped gas.

I remain optimistic, although the latest interview has raised questions about the Karoo zone.

The Cane Creek reservoir is well know, just not so much in ZPHR blocks (further North).
I've always said the massive upside potential is in the overlaying fans in ZPHR block - we now know all of which are oil bearing with 8 commercial size pay zones.

The news couldn't be better - but CH must express caution as the 'upside oil' is from immature knowledge areas and there could be issues with extracting. This is all standard caution.

If all goes well and the 9 layers of oil (which includes Cane Creek) are all "good oil" then it's the best outcome we could ever expect. I was expecting 1 or 2 layers to be extra... but 8 with all 20 oil bearing is awesome.

This will all take time as the project has become more larger than expected in a good way.

Good post FlySeal

I was questioning why the massive drop since the update.
Since watching the Proactive Investor interview with CH - I can sleep easy now!
CH explained why they heavily discounted the upside by extra harsh calculations. In my opinion those 8 extra layers abovd Cane Creek heavily discounted at 125m barrels is absolute minimium upside. What did he say? 7% of possible upside... there's loads of upside to come, CH doing his job as a professional CEO that's all. In my opinion the extra layers combined hold as much oil as Cane Creek. The next resource report will double the licence block risked estimate (after horizontal drill).

BigPlan - Fair enough, hopefully you are correct :-)

I'm hopeful all is well. Although the other way of looking at is that they got to 400m payzone and nothing showed in the mud so carried on down to deeper layers.

Having read this, failing to see "why" the shares dropped. The article just says what the RNS says and has no opinion "why" the drop... so a waste of time reading.

So "why" the drop? We have around 150m more barrels of oil and the Cane Creek looks good to go from the current pad.

Have people see 200 drills required and think we need to raise £milions? The licence area will be developed in stages using IRR revenue so no massive placing required? That's how I see it. Of vourse CH has to express caution as we are yet to set producer framework in the basin and so we have nothing until proven good oil can be pumped out the ground - same for any new oil licence block.
Many stocks dropped today so this was likely sell on news.

Bahamas Petroleum (BPC) spent 10 years researching an oil prospect... but let's not go there! :-O

I remember someone on the DES forum taking out a bank loan to buy shares in Desire - caught up in the hype as they drilled... the rest is history!

Sealion was discovered 9 years ago and is no closer to first oil production today (or likely ever due to CAPEX if peak oil has passed) might something to do with it.

Hi ST - I think Rockhopper Exploration (RKH) released their Sealion oil discovery as a mid-day "Oil Discovery" RNS back in the day.

Tom111 - You only had to see the vertical well wireline graph (compared to producers south of ZPHR's Paradox basin location) to know the sidetrack was going ahead - almost identical reading... the core sample is for shats & giggles when it comes to the Cane Creek reservoir. The core sample is good to know what additional fans (reservoirs) are above Cane Creek with cimmercial oil... each extra layer of oil is game changing to ZPHR as a minnow.
Exciting times.

Seisprocessor - If Tai has multiple reservoirs with 2%+ grade helium resulting in Tai prospect being the most commercial helium well currently discovered on earth... why drill the other two plays which are currently planned?

The 3 plays/wells were to find which helium traps work. If Tai is job done for commercial helium then in my opinion HE1 should now appraise Tai now and get it producing asap - leave the other wells for another day.

This approach is boring, I know. However, the excitement of multiple helium wells is all fun but think like a business head. Why risk another well and cause doubt about the basin, using more funds and having too much going on? Keep it simple - get this one well producing and then build reserves. This way dilution is minimal. What good is 3 commercial helium wells at this stage. Smart appraisal of Tai should be the main focus if the maiden well has struck jackpot.