COS .... whats it mean?, page-39

Wence,

i have a smilar time in the industry, and share many of your views. Many companies (some of my current or previous employers included) would say that a COS of 50% is maximum of what one would use for an exploration well, regardless of what the parameters would be. Of course, on Samo a lot of the paramets are fairly well known, due to the analogs from SNE. Without having looked at it in detail, i would assume that the main pareameters that would be in question is whether the structure is sealing, and whether there is a source rock there.

Downdip from SNE, Fan 1 was a discovery, which means there definitely was a source rock and a migration path there. At Samo, the equivalent stucture downdip on A1 is called Alhamdulillah, which as far as I am aware is the same as what was penetrated on Fan South 1. That contained oil, but not in large, commercial amounts (the well was most likely a technical success, but not a commercial one). Maybe all the oil that was in Alhamdulillah or deeper has migrated on to Samo, or maybe there just wasn't much there to start with.

Aside from the source rock question i would have due to result of FS-1, I would say that Samo is as good as it gets with exploration. It is always easier to find oil next to oil you have already found. Samo is probably one of the most interesting exploration wells that wil be drilled this year, with a COS that is very, very high.Practically speaking, 50% is incredibly high, it really signifies that they are almost sure this will be a discovery.

Will be interesting to see this well be drilled and the result.

Since people have posted here on CVN, their latest well was probably a technical success (they found oil), but it did not meet the commercial treshold (it was tight).