RE: The only caveat is20 Aug 2021 08:20
The 'IF' is not for successful oil extraction, it's for the HSRP, otherwise it's NFP:
'Results from the recent evaluation work have reconfirmed Zephyr's view that the planned State 16-2LN-CC well is a suitable location from which to test the natural fracture play ("NFP") in the Cane Creek reservoir. Drilling operations are scheduled to commence in July.
· Results from reservoir, fracture stimulation and simulation modelling suggest that the Paradox project could also be developed by way of a hydraulically stimulated resource play ("HSRP") which provides an alternative to the NFP and which would potentially facilitate broader project development across more than one reservoir.
Of the twenty overlying reservoirs, the Company has high-graded eight reservoirs which have adequate thickness for potential future development. If development of the eight high-graded reservoirs proves feasible as an HSRP, the Company estimates:
- The potential for up to 200 well locations across the eight overlying reservoirs; and
- A risked contingent resource potential, net to Zephyr, of up to an additional 125 million barrels of oil equivalent ("mmboe") on an estimated P50 Hydrocarbon Initially in Place ("HCIIP") of around 1 billion barrels of oil equivalent ("boe") on currently held acreage.
If the HSRP development route for development is selected, it could allow for a simpler surface footprint and more predictable well patterns including the grouping of multiple wells from a single pad, thereby maximising resource efficiency while minimising surface disruption.
So HSRP may get you an additional 125 million boe and a more efficient way of getting it out.
If not, it comes out the normal way with a bit less to go at. Either way, oil will flow.
That's how it reads to me anyways.