trading halt, page-34

Ort

I'm not worried, just was seeing two sides to the story. The turnover post Artemis? Yep probably pulled those figures out of you know where but it was a bad bad day.

Blurrt

"4/5 days is plenty of time to test both zones" You could be right but looking at how long it took Karoon to production test a 70 meter zone I wouldnt think so, plenty of trips out of the whole with different equipment. This is from Karoon just before TD

"If production testing is undertaken, approximately 35 additional days will be required to complete
the testing operation"

By the time they began installing the production test string to the time production testing was reported it was 6 days plus weeks of testing after that. From installing the test string to moving to its new location was over a month. We have two zones to test meaning a lot more trips down the hole and time.

Another reason I'm not worried is the information gathered from the wireline logs tell them a hell of a lot before they decide to spend all that money production testing. I know they couldnt send the equipment down pior to casing but it seems reasonable they did after casing.

Here's some comments made by Karoon from their wireline logs pior to testing.

"Petrophysical interpretation of the data retrieved to date indicates the presence of net pay gas sands with good reservoir properties. This is further confirmed by wireline pressure measurement and gas samples taken via wireline equipment and recovered to surface

Production testing operations are scheduled to commence after the completion of the wireline logging and data gathering program and when the production liner is installed."

Here's a comment from Santos about one of their wells pior to testing

"Wireline logging has to date confirmed 61 metres of net gas pay in the Jurassic-aged Montara, Plover and Malita reservoirs between 4,873 and 4,998 metres, and the well has not intersected a gas-water contact. Pressure data has been acquired from multiple points indicating that gas would be expected to flow at a high rate. Multiple condensate-bearing gas samples have been recovered to surface"

These arent our wells but it seems industry standard to know more or less exactly whats down there before spending millions on keeping the rig on location for production tests. Cant see Eni being any different but just keep their cards close to their chest. In fact after reading that I retract my statement about no need for a halt on Friday as they were probably in the process of getting more info from the wireline logs.

Not betting on the volume of turn over first day back trading but will bet that the Ensco 109 will be sitting on Heron for 110 to 120 days.