SB ii9 Aug 2018 13:52
Well, we are fast approaching that time when we will get an opportunity to assess Dustin’s work in the Taribani field. He is also approaching his first anniversary with FRR. We hope he has made a tangible contribution in the field and I guess the upcoming results from these 3 wells will tell us that soon. However, and unfortunately for Zaza, he has a lot work to do to restore some of his “shine” after the way he handled the whole affair on Ud [from start to finish]. For me, the gas exercise should have been for different reasons like validating the geology and the CPR numbers - I believe we achieved that with quality gas flowing for the first time in Georgia from the Miocene/Maykop/Gareji formation. We also know that Block 12 sits on the top side of the Mega-Kura basin where Azerbaijan is exploiting its gas in the Caspian sea. But against this, all this premature chit-chat by Zaza about laying the gas pipes and monetizing this by year-end was a massive misjudgment on his part, only to be followed up with another blooper on the Christmas prezzie remark. Anyway, as I said, for me, flowing gas from Ud would have de-risked the massive 5.8TCF recoverable gas that NS&A ascribed in the CPR, and not necessarily monetizing it. But the gas hasn’t escaped and is waiting for its next drill/stimulation.
So, on to the oil campaign: A huge plus that they have successfully drilled the 3 oil wells, on time and on budget. Operationally , this experience would have made the team stronger. Plus, they have secured the funding for the next well. Bringing 4 wells in to production over a 12-month period is an excellent achievement in my opinion, but all this will mean ‘jack’ if production is below par. Collectively, anything over 600bpd from the three wells would be a big step in the transformation of this company, both financially and operationally.
Finally, still not a word on the next site visit date or any kind of update on Twitter - waiting patiently.
JMO
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