Turkey22 Jul 2021 11:44
Found this on the internet. DYOR but I'm confident enough to stay put. My average is 0.24p If they slip further I might use that as an opportunity to get the average down further.
A June 2020 report prepared by Xodus Group Ltd ("Xodus") for AME calculates that two identified geological targets within the Licence's Cretaceous Mardin limestones, the undeveloped Basur oil discovery and the Resan "missed" oil pay opportunity contain an aggregate unrisked gross mean oil in place, or oil in the ground before extraction ("OIP"), of approximately 253 million barrels ("mmbbl"), with a significant high case (P10) gross aggregate OIP of 495 mmbbl. The Company's and AME's evaluations of the available 1950s and 1960s well and geological data conclude that potentially significant moveable oil within the naturally fractured Mardin has been overlooked by prior operators in both Basur and Resan (i.e. missed oil pay).
An undrilled exploration target in the shallower Garzan limestones, Prospect A, adds further unrisked upside OIP potential of between 68-112 mmbbl in the mean and high case (P10), respectively.
Note that UKOG's internal evaluation sees further upside resource potential than is currently identified by Xodus.
The Basur discovery, made in 1964, whose primary target was the shallow Cretaceous age Garzan reefal limestones, recovered 600 bbl of oil to surface from deeper naturally-fractured and dolomitised Cretaceous Mardin limestones. Core and cuttings contained live oil. Of the oil to surface, 500 bbl were produced over a 6-hour test period, equating to an extrapolated rate of 2,000 barrels of oil per day ("bopd").
Similarly, wells drilled in the 1950s at Resan originally targeted the overlying shallower Garzan but found good oil shows within the Mardin, although short tests were inconclusive. As the Mardin's natural fracture potential was largely unrecognised at the time, it is AME's and the Company's view that the Resan wells were not adequately tested.
Both Basur and Resan were drilled before the potential of naturally fractured Cretaceous limestone oil reservoirs was fully demonstrated by the giant fractured Cretaceous limestone field discoveries made in the same petroleum system within the Kurdistan region of Iraq including Taq Taq, Tawke, Peshkabir. The giant Kurdistan discoveries were made after 2002
Basur and Resan are also both geological look-alikes to AME's producing East Sadak field, discovered and put on production in 2014, some 20 km to the south east. East Sadak lies directly along the same folded elongated anticlinal (dome shaped) geological feature containing Basur and Resan and produces light 42° API oil from the Mardin limestones, with initial well rates of up to 1,300 bopd.
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