jka what does the future hold, page-34

Some of us may shudder at the cost of Hammermet West 3 at perhaps $40 million.
But there must be reason behind the madness if it is so called.

- First the drilling is into a known oil reserve in the ABIOD formation. From a previously well that was VERTICAL and in all probability missed sweet spots even though it passed through 192 metres of oil bearing softer carbonates

- It is based on a HIGH probability, it is an extension of the adjacent discovery just 12 km away which is now delivering somewhere between 5000- 10000 barrels a day plus huge gas output as well.

- But perhaps what is most significant for why it was NOT drilled here before (offshore HW3) in Tunisia was that Tunisia perhaps for some reason was related to Libya being much more explored and exploited and lots of oil, then the politics was such that perhaps Tunisia was deliberately made to look like the oil poor neighbor next door, more than anything and it really did not become a target because of the Gadaffi regimes power for 30 years plus. Politics?

-But since the so called Arabic revolutions (in the last few years) and a closer look at the Tunisian region by many oil companies, it is obvious been UNDERXPLORED. Even up to recent years it perhaps it was really missed because of this belief that it was not a oil rich area. The number of wells drilled in the entire region of Tunisia and water has been actually very low - perhaps less than 1000 wells (not all oil and gas) over 163000 sq km of land and about 35000 sq km offshore -from about the late 1950's to the present.(that is a low number).
Many wells were not deep and many were real wildcats without much pre-knowledge.

-But times have change, methods have changed.
-DRAGON Oil now has the expertise and know how to exploit a target with precision HORIZONTAL drilling and 3D technology To almost where so called fractures appear to be in HW3.

- If they are right with their drill science, is there any reason why then this type of drilling cannot increase the flows potentially 10X, 20X,... compared to a conventional well.
So actually - it may actually sound like a reasonable price after all.

Well that is actually the final reason why its costing somewhat more, is all about this multiplication factor (X??) isnt it.
Even now in Tunisia at HW3 - COE,JKS and DGO should have now a good idea of what is INITIALLY perhaps there.

Getting late = Im fantasising, perhaps even a bigger multiplication factor.Yes!
Just better wait and see.... not long now.