As we know GJ made comment (almost lost in the announcement) about skidding the rig to drill further wells, which has sort of been touched on but I think has been glossed over.
“The Borba well is the logical next step in evaluating the world class potential of the older sediments in the Sacramento Basin. There is plenty of room on the well site to skid the rig to drill further wells upon success.”
If we stop and think about it the fact that he has made this comment is extremely significant imo, in that it means that they have established a plan for when Borba 1-7 has been drilled to unlock value. That is, if Borba 1-7 comes up with the goods (so to speak) they are going to focus on opening up the “Borba Prospect” quickly.
GJ has said that the Borba Prospect has multi TCF potential from the other targets, and by the sounds of it they are going to be chasing this multi TCF potential very hard, by firstly drilling Borba 1-7 and then if it is a success, skidding the rig and drill another well almost immediately to further tap into the reservoirs and to start bringing the potentially multi TCF gas to the surface.
This is very exciting as it means that they have a plan in place of going very hard, being proactive and proving up the target zones from the Borba 1-7 drilling, then doing immediate follow up drilling to unlock the value.
We could be in for sustained and significant newsflow from not only Borba 1-7 drilling but an immediate follow up well imo, which could bring the TCF dream to fruition very quickly.
Exciting times, bring on the drilling and the rerate !!
XST Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
