If you remember, AZA was previously targeting an additional 15 mmbbls (gross) of oil from Basker-6, Basker-7 and Basker-8 based on a perceived new OWC (which turned out to be false, as the sands Basker-6 drilled were water-wet and 40 m low to prognosis).
This 15 mmbbls was additional oil, not part of the existing 2P oil reserves. So in theory, the existing 2P oil reserves should remain unchanged and we get some additional oil reserves from Basker-6A. But it is still speculation until AZA releases more information (i.e reassessment of 2P BMG reserves).
Given where Basker-6 and Basker-6A drilled, Basker-7 and Basker-8 will have to move as well (see BPT Investor Presentation for original planned location of 6, 7 and 8 drilling targets).
If you look at the old presentations (see the August 2007 BPT Investor Presentation, page 29), it would appear AZA targeted Basker-6A close to the old inferred OWC so my bet would be 7 and 8 will be relocated to around the SE extension confirmed by Basker-6A, nearer the old inferred OWC. Either that or it does not drill any additional wells this year until it reassesses the existing seismic on the area.
In terms of your other point about high production peaks (no, it has not been recorded this high before). I had previously pulled up an old Anzon Annual Report (as a refresher and to compare with the Basker-6A results when we got them):
"Summary of Net Sands Penetrated B-1 B-2 B-3 B-4 B-5 M-1 M-2A
At the start of the year an Extended Production Test (EPT) on the Basker-2 well was underway. It had started in November 2005 and continued, as planned to May 2006. In parallel, a drilling program that included the Manta-2A well, Basker-3, Basker-4 and Basker-5 wells was completed.
The EPT and the drilling program resulted in a significant change in AZA’s understanding of the Basker field.
The south-eastern section of the Basker structure was higher than expected, as confirmed by Basker-3 and Basker-5 drilling results. The effect was to make the mapped structure extend further to the south than previously mapped, increasing the volume of hydrocarbons in place. A second major finding from the Basker-3, Basker-4 and Basker-5 drilling was the presence of substantial gas caps overlying the oil reserves. Basker-1 and Basker-2 had shown little indication of gas and samples had suggested an oil with a bubble point pressure below the reservoir pressure (suggesting that no gas caps would be present).
Oil (thickness of the sands in metres) Basker-1 .. 23 m Basker-2 .. 19 m Basker-3 .. 17 m Basker-4 .. 13 m Basker-5 .. 24 m Manta-1 .. 24 m Manta-2A.. 32 m
Gas (thickness of the sands in metres) Basker-1.. 2 m Basker-2 .. 3 m Basker-3 .. 50 m Basker-4.. 28 m Basker-5 .. 27 m Manta-1 .. 32 m Manta-2A.. 27 m
The table above shows the net sands penetrated in the different wells drilled to date [up until the drilling of Basker-6 and Basker-6A]. The thickness of oil sands found in all wells was encouraging. The presence of significant gas sands in the Basker-3, Basker-4 and Basker-5 sands has led to plans to proceed with a gas development project. The presence of significant gas in the Basker reservoir was also evident by the results of the Basker-2 EPT."
Source: Anzon Australia Limited Annual Report 2007 Page 4
WHILE THE HIGH PRODUCTION RATES FOR THIS SIDETRACK CERTAINLY IMPRESSED MOST EVERYONE, IT IS MORE THE FACT IT WAS DRILLED AWAY FROM THE CREST AND THEREFORE HAD A LOWER GOR THAT IMPRESSED ME.
Cheers
Disclosure: I hold BPT and AZA shares (having bought back into AZA at $1.15 this week)
NXS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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