I was just going over the 20th February 2017 presentation video again for probably over the 100th time now and I really enjoy Paul Basinski's statements over 10:45 to 16:50 of the video. He seems to be confident about the contiguous acreage geology with the number of on trend wells with us and the data gained from all these wells. I know it's been discussed a lot and probably a captain obvious moment on my part but I would be really surprised if the well data from Icewine 2v is materially different from the Icewine 1 data located a mere 20 metres away given the significant amount of work Paul Basinski has put into his modeling.
This transcript is great stuff from 10:45 to 16:50, thanks to steve068 for the efforts once again for doing this transcipt for all of our benefit back on 24/2/2017.
"Paul Basinski: Thank you, all. The time has gone by. It just seems like we were up here a couple of weeks ago. A lot has happened since. In addition to materially increasing our position at this last sale, we now control the entire sweet spot for this play, which after the Eagle Ford experience that we had, we could have also done the same. The idea was, if we're going to do this, let's this time not leave money on the table. Right now, as we believe it, we've basically leased the entire thing up. Now, we're really ready to rumble after all these years.
Dave pointed out a little cartoon map. There it is. Like Dave said, this represents a lot of different information. Effectively, what this represents is the integration of not only all of the core data, but then we've come up with some new IP that we are able to, with very high probability, be able to tell where these wings are. To make it real simple, what we came up with, the essence of it is that we have a number of wells that are drilled on trend with us, around eight or so.
What we were able to do, again to make this real simple, we looked at where, when you drill a well, when you put a solvent on the cuttings, you get what's called a fluorescent flowing cut. If you know what the last cut is, the depth, and you know what the color of that is, with our thermal models, we can then predict the other parameters that we are able to do in the first well. By doing that, we see now that we have an continuous feature that actually gets wider on the sides. As it turns out, the peening distribution or thickness of this is exactly what it is up in the Vaca Muerta, and Point Pleasant, and Eagle Ford, and Duvernay. The distance or the width of it is pretty profound. Then, the other thing that happened at the sale was we're not only able to pick up additional acres, but we're able to increase the net effective footage because the shale gets thicker in some places that we just picked up.
The big move since we last talked is nailing this down, but then the other thing was really improving our model and this volatile oil. As Dave said, it's one of those things that you can talk to a lot of people about and they all nod their head. These are the experts. When you actually talk to them about it, it's more of a theory and being able to predict it because it's very complicated. What we've been able to do is to reduce those assumptions. Now, we have a model which is pretty robust. Effectively, what we're seeing is the volatile oil, if you use what the oil business uses to figure out the amount of oil, they'll use this thing called the formation volume factor, the B-sub-O, which basically is just the ratio of the amount of reservoir barrels per stack tank. In other words, the ratio of how many barrels in the ground versus how many you get out of the top, at the surface.
What we were to do was, using all the information from the well, quantify the volatile oil side of it. We talk about volatile oil, but volatile oil is a different type of oil that you add on to this other calculation. In other words, what we were able to find is rather than having 45% oil, then another 20% or so, and what this is, is this is oil that's in the gas that comes to the surface that's actually richer than the other oil. That's what the driver in this play is. That's the reason why the sweet spot in the Eagle Ford works and you get two miles away is not nearly as good. We were able to see this phenomenon in the well. Then, with the offset wells and this last cut, we're able to take that.
Now, we have, this is a simplified version, but this is based on quite a bit of work. We now have very high confidence that we've taken the entire sweet spot out. That's the update for right now. We're very excited by it. The question moving forward is, as Dave said, we brought in the top frack guys that we're aware of. One guy he’s 80 some years old. He's done personally his company about 100,000 frack jobs and shales, a guy who's done more than anyone on the planet. He is the prospective in order to see what we have. Basically, this is not going to be a cookbook thing. He's seen all the data and so we're very closely aligned with him. That's why we're going to have a very sophisticated program. That's really been a big step for us, too, bringing in that expertise. With that, I'd like to hand it over to Steve, or Dave."
Have a great remaining weekend all. Good luck to all holders
(20min delay)