RE: Re RNS18 Dec 2020 13:00
A drill stem test can be done to determine a 24hr flow rate from a reservoir. A DST would only be for 1-2 hours due to restrictions on storage on board the IceMax. For example, an hours flow rate producing 500 bopb, would be 12,000 boepd equivalent per day. From this, it can be determined the porosity, permeability and pressure of the reservoir etc, aswell as demonstrating moveable oil. The DST can also determine how many wells are needed to produce a field. This is important information for the economics of the project. The most revealing aspect of any flow will be the naturally fractured carbonate. BPC are targeting specific fractures. The 3D is so detailed that these fractures are visible and the drill bit is targeting the optimum location of fracturing for flowing oil. A well producing 10,000 barrels of oil per day will mean about 16 wells in 4 pods (4 wells) for production to an FPSO. If the production is 20,000 barrels, then 8 wells with (2 pods). The more productive the reservoirs, then the economics of drilling improve, ie less wells needed. Perseverance is targeting multiple reservoirs.
For those that do not like the dilution of shares, it should be remembered that BPC own 100% of the licences. If BPC had farmed out, then this percentage would have been about 20% at best. The asset dilution would have been huge and unacceptable. Even then , a major may not have been in a position to drill, and could have run the licence down, especially due to the fall in the oil price and Covid-19. Right now, BPC have done an excellent jog in getting the drill bit on location and drilling this huge well. With 100% ownership, with Trinidad and Tobago and Suriname and Uruguay all added as a valuable part of the mix, and all 100% owned, the upside is huge. Perseverance is the beginning.
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