Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Partridge, given the salt seal hydrocarbon charge is only a minor risk factor. The biggest risk factor is reservoir quality, namely permeability. To date of 10 structures drilled 8 have failed due to low permeability, 1 has worked (TE-5 Horst) and the jury’s our on the latest NE Lakbir.
If the logs suggest they have decent pay I'm sure they will try a conventional flow test and then proceed to a full frac job. I still don't believe how they get away with calling fracking mechanical stimulation but never mind!
Why has no one mentioned permeability which is what determines whether a trapped accumulation will flow not porosity. The RNS gave little away and left the non commercial option firmly on the table. It could in fact be argued that they were softening up for a technical success but commercial failure. However fridays price action was interesting, either someone knows something or the markets been manipulated. We should know on the 2nd
Actually it does: The Company will also initiate seismic analysis to establish the Company's internal estimated gas resources of the structural closure and the upside potential of the North East Lakbir stratigraphic trap. Kind of infers the gas is in the structural closure with potential in the stratigraphic trap. Maybe that's why they are drilling deeper as its not clear whether they have located gas outside of structural closure. So currently look like a small discovery to my mind until we get more precise information. Must do better Mr Parsons.
There's nothing wrong with green oil, it's not always black.
They used logging while drilling (lwd) on some of the earlier wells. This is more expensive. I believe they didn’t use it here. Mr market thinks it’s a failure which given a COS of 30% is the most likely outcome. However we simply do not know until results are released.
1) They do a trip out. Ie the drill string is removed from the well bore. Mud is kept in place for well control. At this depth this could take around a day. 2) A wireline Sonde is dropped into the hole and moved slowly at a consistent rate over the zones of interest. This captures all the data required from the various tool sets in the Sonde. This should take less than a day assuming all kits on site. Often they are flown in AFTER TD is reached so there maybe a delay. 3) Interpretation of the wireline results may take a few days but they will have a very good idea from the raw data collected. Therefore anytime within the next 7 days for results.