RE: Red flag23 Nov 2020 11:00
Shareholder, not wanting to carry forward our discussion from yesterday but the ‘feasibility’ study that Chariot have conducted in-house, as far as I understand it, falls short of what is considered industry standard, for the development of a fully functioning, producing well;
Oil & Gas Feasibility Studies typically involve: Establishing scope, objectives and terms of reference for the study
Developing a study basis including oil & gas development data, well site PVT data analysis, etc. Review of subsurface exploration results, Performance of geology, reservoir engineering and production engineering, consideration of EOR techniques, e.g.: water injection, steam injection, gas lift etc, establishment of base drainage scenarios and production profiles, performance of development engineering, production o facilities definition and separation facilities definition, HSE screening, oil and gas risk assessment, development schedule, CAPEX, OPEX and oil and gas economics. (Cut & paste, courtesy of another chat room)
I think we’d all agree, more work needs to be done. On the flip side, Chariot have taken a dormant uneconomical discovery and made it marketable. It’s certainly not the dogs dinner that Shedlife, Simon et al are crusading.