I for one hope it is put well and truly on the back burner, I don't want another go at it when we have our own oil to get out of the ground. I want the company totally focused on our own conventional and FO, HRZ and another FO and possibly Yukon depending on the 3D results.
Funny really as I was not convinced at all that the positive RNS which came out on WINX was written by DW. I suspect one of the other companies may have put it together because it was a very well written piece (I am not talking about the content or about the fact it was a positive RNS) especially after that bloody awful effort on the Fri and again I am not talking about the bad news but the way it was put over and the lack of detail.
CWS I remember it being quite a surprise when DW announced it at the briefing, I have no doubt whatsoever that PB had input but I suspect that money was also a big consideration, which also led to the lack of winterisation kit available.
Phrontist you do have some valid points. DW salary is on the very large side considering the company has not yet earned a single dollar in the last 4 years. I am not quite sure how it managed to reach the level it did without some serious questions being asked. Last September I did in fact raise with DW his new bonus scheme and that a lot of people were not happy, his answer was that it was within the norms for companies like 88E and he appeared quite surprised. I like DW (I have met him 4 times now)he seems to be down to earth but I do believe he has a bit of an ego and does not take criticism very well.
You are right that we seem to have lost focus on the HRZ and I am surprised it took another company we are paying to tell us to go to BH the experts. I would have thought that a company like them would have been called straight after IW2 did not flow as expected in the year we drilled the hole. We wasted a whole year and more money trying to get it flow the following year to no avail. I found it interesting with WINX that we were prepared to frac and flow test in the depths of winter and yet with IW2 we had to wait until summer before doing our drill and then ran out of time because we had not prepared for winter setting in. Question is are we spending too much time buying up land etc and not enough on the drilling operations.
You are right if the company has not got a dedicated geologist then it needs to find one ASP, I struggle to believe an oil exploration company does not have one but I would support getting one ASP.
All will be alright if DW manages a reasonable FO, however, whatever the deal is it better come with a nice load of cash because I think DW will struggle to raise lots of cash again until some flipping oil comes out of the ground. I for one do not want to see a cash raise to pay his enormous salary.
All good points money hawk the trouble is that we are now on our 4th year with not a drop of oil to the surface (i don't count a couple of beakers from IW1). If we need to raise more money DW is going to find it extremely difficult, it now comes down to the FO. If that does not come in then I am afraid its just about curtains for 88e and almost certainly for DW. I think DW has setup Yukon as the lifeboat for himself I just hope he does not have to use it.
Jeff with oil now over $60 I would hope for at least something similar eg $3 a barrel. That would still leave an enormous amount for whoever buys in. It will come down to how much oil there is, how much to get it out and to a pumping station. $200/$300 million in the bank would allow us to complete 3d on our land, have at least another go at HRZ, possibly do our own drills on the conventional and something similar with Yukon. But I suspect it would soon disappear as everything is damn expensive to complete in Alaska.
Darkelf I expect that is their intent but it may all change after the wire logging. Its a shame we could not have started earlier and given ourselves a chance to test both areas of interest but with ice roads and the pad to be built I expect this was the earliest we could drill. Hopefully the WL will give us enough information that we can still sell the whole lot off for many millions.
Staycalm there is a way to go before we can say no more dilution, I am intrigued as to what happens next with regards Winx if we discover lots of oil. Hopefully we get an offer PDQ and we can bank the money, however, we have partners to consider and nothing happens quickly when hundred of millions of dollars are the cost. Oil first then time to make serious money.
Credit to YA on HotCopper for this post.
WL logging for a 2072m (6800') TD doesn't take long, the update says 'interpretation'. They should b able to read the net/gross pay pretty quickly. Question is which zones has got movable HC's present & what's the reservoir property over that interval.
The openhole at Winx-1 should b apprx 4300ft in length (i.e, from 2500ft which was their last casing point to final TD of 6800').
So the Operator will run multiple tools & collate as much info as they can depending on their logging contractor (Halib'ton, Sperry, Baker or SLB).
If there r multiple zones of interest, then they'll run something like a triple combo tool first, then the MDT probe & if reqd take side wall cores (SWC) since they haven't drilled a sidetrack to core the main reservoir.
The swc's look like champagne corks so r sent off to the lab for poro/ perm measurements.
The MDT tool can take time for multiple zones as they stop & seal the pressure pads & take a jab of fluid so its like a mini-DST as it measures pressure, drawdown, perm & obviously the fluid content. Data from the SWC's & MDT fluid as well as production test is whats reqd to lock in a Contingent Resource assuming the net pay is thick with oil (& not water bearing). GLTA"...
Well done DW, credit where credit is due, a well written and informative RNS that has not left us all piling into google to try and find out what is happening. Would love to know why wire logging is going to take 10 days as I seem to recall it was only a couple of days on IW2 which was much deeper. Must be lots more to look at, yippee!