At the time of the first update they were drilling at 333' per day. By today's upate, 214' per day. There is still 793' to casing point. This should take about 4 days, or until about Friday.
Takes a couple of days to set the casing, then 523' to the top of the Ismay formation, about 3 or 4 days. So, all going well, we should start getting some meaningful information after the 22nd February IMO.
This is a SHALLOW well targeting the ISMAY formation.
Interestingly, the GIIP for the Ismay has a low estimate of 9.0 Bscf and a Best estimate of 31.5 Bscf. If the gas in place is valued at say, $4.00 mmscf, then the valuation for the Ismay would range from $36 million to $126 million.
This equates to between 8.5 cents and 30 cents per share. These are back of the envelope figures only and don't include production costs. Does show the potential though.
The gas is there. The issue is whether they can overcome the previous problems with water and can get the gas to flow to surface at commercial rates. I hope it works out. They're certainly giving it a shot.
GDN Price at posting:
5.4¢ Sentiment: Buy Disclosure: Held
