The really interesting snippit is that Songo Songo is not filled to spill point, which pre-drill prognosis suggested may add doubt to the existance of hydrocarbons to the East (our lease).
The thought would have been that Songo Songo, being the regional high point, may well have trapped all the gas there was...and not being full to spill, meant a likely one-off field, with maybe a few little sattelite accumulations nearby.
I suggest Kiliwani North would have been drillind on this basis.
The lower GWC however has introduced a whole new understanding for everything east of Songo Song...and possibly west too?
In my view thoughts may, Songo Songo potentially represents the escaped gas from the Nyuni block....if so, there is no telling exactly what we may be sitting on.
If Songo Songo was filled to spill point (it is not), the obvious conclusion is for no seal between Nyuni and Songo Songo...and that all gas on our side simply migrated across, filled the Songo Songo strucure, then was lost after Songo Songo reached spill point.
In this scenario, we may well have been sitting on nothing.
The confirmation of seal via the lower GWC, combined with the fact Songo Songo is NOT filled to spill point, clearly points to the possibility most of the gas sits on our side.
This effective seal might also work to prevent oil migration to Songo Songo...if oil is present...so perhaps the upside of the Kiliwani results are even better than some might think?
The simple fact KEY suggested they need aditional "marine seismic", not ground based seismic on Songo Songo Island, gives yet another clue to their thoughts on the northern extent of this find.
My records show plenty of seismic has been shot here, but it does appear sparse compared to that shot over Songo Songo, so perhaps the complexity of this find is not adequately adressed from the sesimic avilable?
Also...the less than accurate results from Seismic at K-1 probably underlines the need for something more current. In fact, given the "commecially viable" call on Kiliwani, I would not be surprised to learn they run 3D sesimic here...certainly would be money well spent.
Which ever way you look at it, if the interpreted structure continues beyond the extent of existing seismic, we are looking at a very big find.
Imagine if it turns out Songo Songo were in fact simply a satellite "escaped accumulation" of the main game?
lol...one can dream I guess!
Cheers!
KEY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
(20min delay)