Member Info for MIKEY30

Drilling speeds are slower as you drill deeper due to increased pressure and hardened rock formations, however this only becomes significant at depths >4500m...and Sinopec are one of the best in the industry with technology to withstand such depths.

Agree!

I hope it does come then. I'm going to go for 7am, 17th September.

This is all we know.

"The drilling programme scheduled for Block XX remains on track. Contract negotiations with the preferred bidder to supply and operate a rig are in the final stages. Formal award of the contract is expected by the end of July. The selected rig is in country, is operating close to Block XX and is available from Q3 2018. Permitting for drilling is progressing and the first well, on the Gazelle prospect, is planned to spud in late Q3 or early Q4 2018. The target for the second well will be selected shortly, upon completion of detailed seismic remapping. The Company intends to complete both Block XX wells before the end of the 2018 drilling season, which ends in late November".

Until the next operational update we won't know any different. Mike Buck's usual style is to compile all updates into one so here's hoping our next RNS is a big juicy one and hopefully with positive news. I expect to hear something within the next 2 to 3 weeks.

Catch*

Mr P, certainly hope so. To strike oil on the first drill would catcg quite a few sitting on the sidelines. The deepest drill this year. Fox is 4000m. As somebody said before we have not drilled in these blocks and therefore the drill period is extended slightly to account for the unknown. If we were to strike oil in Blocks IV and V any appraisal wells would be drilled quicker. Not long to wait now. Monday puts us at 56 days after spud, I expect to see fluctuations in SP movement between 8.5 and 10.5p until news hits.

Captain, agree. Let's hope we get some answers in the next 2/3 weeks to confirm all.

We have 91 days left of the drilling season (End of Nov).

Sinopec Rig
- SL 17 days left
- Mobilise to WH (300km) - 1 week max (based on timescales to move 1100km for SL)
- Rigged up - 2 weeks max (based on timescales to rig-up for SL)
- Spud Wild Horse 25 days (2017 Sinopec quoted 20 days however since appointed of MB decision to drill a little further TD 2000m)
Total number of days 63 days
Total number of float in drilling season 28 days

Petro China Rig
- Site Prep at Gazelle, well site construction and on site water well drilled for operations (2 weeks)
- Mobilise rig from Block XIX to Block XX (Gazelle) 30km (2 days Max).
- Previous DT drills in 2010/2011 took 14-19 days to spud, cement, case, mobilise to the next location and rig up (average of 1800m). Gazelle is 2200m TD therefore I expect this to reach TD in 3 weeks (21 days).
- 4th drill to be confirmed. Presentation (25th June) includes the 4th drill TD of 2000m (average TD in Block XX) therefore I'd expect this to be of similar timescales 3 weeks (21 days).
Total Number of days 58 days
Total Number of float in drilling season = 33 days
Total Number of float Q4 to end of drilling season = 61 days - 42 days drilling = 19 days

In between, parallel activites will take place inc
- Site Prep at Wild Horse (due to commence late August I expect this has already begun should the programme remain).
- Block XX rig contract (spud depends largely on rig availability, I suspect the contract will be signed once given the thumbs up from DQE, I expect this news to be imminent should the programme remain). News on multiple fronts; this could differ in content dependent on SL results. E.g. appraisal well SL-2 if positive.
- Site Prep at 4th drill (TBC). Potentially Heron. To be confirmed soon.

All complete guestimates on my part and all IMO however just wanted to provide some comfort to PIs that there is still time.

September the 17th will be 70 days after spud. Up to 18 days to go. Hopefully we will hear something beforehand. Not long to wait now guys!

I make it 18 days until TD, logging and evaluation.

Our*
Become available*

That's right Victor. So the rig tender process completed mid May. So for a rig we knew we were going to have available this took 3 months to finalise a contract. That would take us to mid August. Except are pre-requisites are for a rig becoming available.

Options
- A rig has not become available and we are therefore awaiting for availability before finalising the contract and this will move drilling Block XX into 2019.
- A rig has not become and we are therefore awaiting for availability before finalising the contract, however we are still on schedule to spud early Q4.
- The programme has changed due to a potential discovery.
- The programme has changed due to a Farm-In.
- The Drilling Contract has been received and we will hear news imminently (amongst other parallel activities).

You are selective in the quotes you post to produce a negative view on Petro Matad. There is a bubble in that spirit level. Focus on it.

The tender process for Sinopec completed at the start of April and the Drillig contract wasn't confirmed until 3 months later at the start of July.

All in good time.

Mike Buck "One thing I don't like to do is say I'm going to do something and then not deliver."

We know Mike's covered options to make the programme flexible if needs be (permits/finances). The next piece of news could prove interesting.

Hello Victor,

You wondered why I hadn't corrected a post. Apologies I have been at work and therefore I have not been able to read the LSE board.

I have read the post from 2010PM you were referring to and I appreciate 2010PM's opinion as a knowledgeable poster who does his research. That's not to say I always agree with it. Everyone is entitled to their opinion whilst facts are not available and IMO with the additional 200m at a depth of 3350m I believe we will still be drilling but nearing completion in 5 to 10 days. Leaving testing for each primary zone of 5 days each. Live testing will also be carried out as we drill.

Please don't assume I have 24 hour access to the bb to read the posts and respond.

Nope, that's not been quoted.

Original 50 days to drill 3150m estimates in 2017 makes some believe the additional 20 days were added to account for logging and evaluation. I would guess at TD = 60 days (drilling time exponential against depth).

50 days after spud. Drilling operations expected to take UP TO 70 days to complete. Announcement following drilling operations.

Correct Victor, it can't be stated as a fact. Apologies if my post read that way. I shall word it differently...

DQE have been confirmed as the rig contractor for negotiations on Block XX. In the LSE interview Mike Buck has confirmed that DQE are "very, very open" to supporting PM in providing one of their 7 rigs for the Block XX 2018 drilling programme.

Correct Ojay.

DQE have confirmed they will have the capacity to support PM for the Block XX 2018 programme therefore I see no reason why this won't be finalised.

Indeed we've seen how quickly the programme can chance numerous times. A bit of news to confirm 2018 is certainly welcome. Hopefully news is imminent.

2010 source
https://www.energy-pedia.com/news/mongolia/petro-matad-to-drill-up-to-two-wells-on-block-xx--tamtsag-basin

DQE will be the rig contractor for the 2 drills in Block XX. This is confirmed in the LSE interview last month (about 13 minutes in).

From 2010;
Petro Matad has signed an initial contract with DQE International to drill up to two exploration wells on the Company's Block XX. DQE is the drilling and oilfield services subsidiary of CNPC Daqing Petroleum, and has extensive experience of drilling in the Tamtsag basin, of which Block XX is a part. The drilling rig to be used is currently in the locality and is being mobilised to Block XX, with spudding of the first well to occur as soon as is possible. The DQE rig is partially winterised and, under normal Mongolian weather conditions, is expected to allow drilling to continue until mid-December.

Drilling season in Mongolia runs until the end of November, also confirmed in the LSE interview and in the latest audio (10.07.18). The Block XX drill schedule starts late Sept / early October and finishes at the end of November. DQE have been named one of the most experienced rig contractors in Mongolia.