1) There is an apparent fluid boundary within the total reservoir. The analysis can’t distinguish between that fluid boundary being oil or water, but given the column height calculated from a different data set, it would be logical for this fluid boundary to be oil rather than water.
2) The total reservoir volume represents a gas in place (GIP) of 35 BCF if the entire container was gas filled. This compares well with the volumetrics calculated from the 3D derived map which returned a GIP of 37 BCF. It is recognized that in both of these calculations, the gas can be replaced by a quantity of oil depending on the establishment of the nitrogen/oil contact.
3) One solution in the transient analysis suggests that the gas reservoir has a volume of 5.3 BCF and accordingly the balance of the reservoir volume would be occupied by oil and would be estimated at 20 million barrels of oil in place. Typical recovery factors are around 25% and thus 5 million barrels might be recovered in this scenario.
4) Whilst liquid nitrogen is typically manufactured from the atmosphere this process requires the gas to be compressed from an atmospheric pressure of 14.7 psi and that process accounts for about 50% of the cost which would largely be avoided using the Bluff well head pressure. We understand that liquid nitrogen supplied to the energy sector is priced at around $20 per mcf. This final product pricing would suggest that there is a significant margin available for field produced nitrogen.
SSN Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
