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clock Created with Sketch. 05/01/16
08:51
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Originally posted by gridder
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PJCairn/Far The much awaited result from SNE-2, offshore Senegal has come in and it looks to validate this world class discovery. Oil flowed at commercially viable rates and was 32° API crude as before. The DST showed a flow of 8/- b/d at a maximum stabilised constrained rate with 1/- b/d in the shallower reservoir which should have the potential to make a material contribution and I would expect an upward revision of the resource estimates. With the rig moving around 6km south to drill SNE-3 it appears that there will be no changing of these numbers until at least after that well is tested and there appeared to be no meaningful comments from the operator this morning. Having said that it is clear that this well has delivered at the upper end of expectations, Far will be delighted and also as they raised money before the completion, all eyes will be on Conoco to see what they say. The London market has been a bit miserly with a very modest gain for CNE but they havent exactly shouted this from the rooftops, Far was in trading halt so tonight may show some activity there. This was indeed a ‘bumper’ result and with three different sized players involved, investors can select their degree of risk, to me Far looks like the geared way to play this and I will get back after a meaningful chat with the company later.
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Re: "A DST of a shallower “heterolithic” reservoir unit over a 15m interval (~3.5m net) flowed oil at a maximum rate of ~1,000 bopd on a 24/64” choke"
(20min delay)