Mickey, only the intermediate zones have been tested on the Cas Deep well which were previously untested on the BW5 well. The main gas pay zones identified in Cas-1 are 20% thicker and still to be tested, these are the zones which are now perforated and put on test hence why I see this becoming a second development well and reserves increasing. Read the RNS;
The well encountered 558 net feet of hydrocarbon pay in the Gr7bc section of the overthrust Herrera sands at measured depths between 5,450 and 6,050 feet. These sands, locally referred to as the Sheet 3 overthrust sands, correlate to the sands discovered and tested at Cascadura-1ST1 at depths between 5,516 and 6,162 feet. The gross section encountered in Cascadura Deep-1 was 20 feet less than observed in Cascadura-1ST1 which is located approximately 900 feet to the northwest.
The well encountered 449 net feet of hydrocarbon pay in the Gr7abc section of Sheet 4 of the overthrust Herrera sands at measured depths between 6,050 and 6,532 feet. These sands correlate to the lower sands discovered and tested in Cascadura-1ST1 at depths between 6,162 and 6,350 feet. The gross Sheet 4 section encountered at Cascadura Deep-1 is more than 245 feet thicker than sands observed in the Cascadura-1ST1 well and is consistent with the Company's models based on seismic data.
The intermediate Gr7bc sands were the Company's primary target originally identified in the offsetting BW-5 well. 308 net feet of hydrocarbon pay was identified in two thrust sheets within the Gr7bc section of the intermediate Herrera sands at measured depths between 7,086 and 8,246 feet. The sands encountered in one of these thrust sheets correlate to the offsetting BW-5 well while the other thrust sheet was not encountered in the offsetting well; neither thrust sheet has been previously tested.
Makingdough, Casc has already been tested and independently certified. The reserves are booked.
Casc deep is testing a circa 200ft lower extension of an existing proven zone which reserves have already been booked against and additional sheets targeted.
The existing independently certified reserves as things stand aren't being valued correctly, the market has undervalued much of what is already proven and it is of my opinion that the well currently under test will provide increased reserves before being put into development alongside Cas-1.
Have added to today, as before with the initial Cascadura 1000ft pay result and the recent $2.2bn NGC contract this weeks RNS has been massively underestimated.
The lower pay zone encountering oil was a significant bonus discovery as has been the case with the upper oil zone now put on EWT. To identify a deeper oil pool and shows whilst also acknowledging an updip optimal drill location some 1000ft higher should not go unnoticed.
If the recent weakness is merely based on testing delays and IG positions being liquidated whilst ignoring the substantial reserves upgrades, the above bonus oil zones, third drill rig and huge progress on the road to Royston I will happily take some more.
Just to point out on a recent comment that has been made here, Royston is not dependant on the completion of the seismic surveys and will go ahead even before completion. The well is another twinning similar to those at Cas etc, to an earlier Shell target that encountered 700ft gas effect.
I certainly wouldn’t rule out the bonus deeper zone at Chinook, they’ve already stated more optimal locations are identified updip. If true that’s potentially a deep 1000ft oil payzone on top of the intermediate zone currently on extended well rest and all the thick gas bearing sands yet to test
Bladey they have been finalised, the deal has been struck and signed - the pricing will be commercially sensitive / we may be given a range indication but needless to say it is a route to market with the National Gas Company of Trinidad and Tobago (a government entity) which commercialises all reserves.
Excellent RNS and the teams have delivered, the information omitted is clearly commercially sensitive but given PB is a very astute and straight businessman I would conclude that the deal has been structured based on the indications previously given on interview (and likely a new interview to follow today too).
The deal will be worth billions, the sale price of course will be profitable and with minimal capex required for tie (being onshore and close to existing infrastructure) it appears some if not all of this will be carried by NGC allowing TXP to use cash proceeds to further exploration and development thus win win all round.