To be very basic about the drilling, cast your mind back to school maths, particularly with regards to the volume of a cylinder. Bear in mind that even a small increase to the diameter of the cylinder (ie going across ways) can make quite a big difference to the overall volume.
The first Galoc wells were vertical wells which drilled downwards. Most of the Phase I Galoc flow has come from these well, just oil straight out and up to the surface etc.
The Galoc Phase II wells are horizontal wells that are now testing the width of our cylinder (and of course it may be a cylinder that is skinnier in some places and wider in others).
Therefore the inference of the 1645M is that the cylinder could be wider that we have first thought and that the volume of cylinder is therefore biggest than initially considered in Phase I.
This is what is leading some people to think their may be additional reserves, especially with how positive the wording has been in the announcements.
I must point out this is a very simplistic explanation.
OEL Price at posting:
11.0¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)