RE: MOU reservoir quality (KeithOz post)29 May 2024 23:01
Let’s play..,
RE: MOU reservoir quality (KeithOz post)Today 22:38
Keith Oz, 11:46 (44 recs)
There is a mention of "large scale hydraulic fracturing' potentially being required for the MOU prospects. Fracking is used for 'tight' reservoir formations, typically when porosity is in single figure %ages and porosity is well below 50 millidarcies. We know the MOU sands have exceptional poroperm qualities - porosity in the 20-30% range, and permeability likely to be in the 500 - 5000 md range. How do we know that? - drill cutting studies, comparison with analogous outcropping strata, and of course the fact that counterbalancing the positives for these extraordinarily open and unconsolidated sands is the negative that this makes them more likely to have experienced penetration of drilling mud, giving rise to formation damage. Most importantly, we know that at least MOU-1 & MOU-3 are overpressured from top to bottom, with precautions having to be taken to prevent the catastrophic ingress of high pressure gas - the absolute opposite of conditions where fracking would be required.
Were this not such a knowledgeable poster, I would point out to them that the MOU well situation is very far removed from that seen in the recent 'discovery' by the company they have just invested in - there the presence of gas is indicated by increased resistivity readings on the well log, as opposed to PRD having to take rapid action to literally prevent the doors being blown off (see RNS 13th June 2023).
KeithOz, 12:05 (39 recs)
The initial agreement with Afriquia Gaz is for up to 50 mmcfg/d. At $12 per mcf, that gives $220M revenue per annum, hardly unambitious for just one project for a 3-person company with a market cap of not much over £50M. I have previously performed a full financial analysis of the proposed project, and stated here that it gives by far the highest IRR (internal rate of return) of any project I have ever worked on.
PRD management had never had connection to the MEP as their initial plan. It has always been the intention to prove up the capacity to be able to do so (250 mmcfg/d), and then for an acquiror to take on the expensive, less profitable, time consuming and complex project of G2P and/or G2EU.
Sign In
Follow the stocks
