brr reply

Yesterday I recieved the following reply to a BRR question I asked some time ago. Text in bold is the original question I asked:


"Hello,



Not too sure if you received this reply to your question on Verus Investments but we noticed that a few people weren?t getting their replies around the time of your question. If you did not our apologies and here is the response again.



Recent presentations have spoken about 120ft of interest, 10ft being tested in the deepest (unexpected) sand, and 110ft of interest in the upper two sands. Can he clarify / expand on whether there is only 10ft of interest in the deepest sand ? The deepest sand is 300ft+ thick and is touted to be a potential tremendous discovery so 10ft seems very small.

The 10 ft perforated interval is one of the most interesting parts of the lowermost gross 300 ft, it is the deepest section and needed to be tested first as traditionally you test a well at the bottom, abandon that interval and then move up to the next interval of interest. It is very difficult to go back to a lower interval to retest. Electric line logs indicated very interesting sands over this area and side wall cores were taken over this interval and analysed. There are other interesting intervals in the lowermost 300 ft of sands that will warrant testing and further appraisal.

The 120 ft of interest is potential net pay in the well. The net pay is the net thickness of potentially productive hydrocarbon bearing intervals of a reservoir column usually determined from logs (for instance).
The gross pay thickness is the total thickness of the potential reservoir column that accounts for non-productive intervals such as shale or very low permeability and/or porosity rocks etc and/or parts of the reservoir containing immovable hydrocarbons or even water.



Cheers



Andrew Jones

Sales Executive

Boardroom Radio"


My Comments
================
- When I asked this question I had a number of concerns about Fausse point. I sold out most of my shares around the time this question was asked (retaining a small holding in case there was a discounted SPP / rights issue).

- The answer is confusing to me. It clearly states that there is 120ft of net pay of which 10ft in the lowest segment. They define net pay as "the net thickness of potentially productive hydrocarbon bearing intervals". Ergo the rest of the thickness does not have the potential to be productive.

- Why then are do they state there are "other interesting intervals in the lowermost 300 ft of sands that will warrant testing and further appraisal." ? Are they saying these other intervals are potentially net pay. Ie potentially potentially pruductive....!

- Current interval could be a massive resource but may give a small reserve. Do investors appreciate the difference?

- Whether the current zone proves commercial or not, there is a real vagueness as to how this project will proceed. How, what, and when really need to be answered. Flow rates will only be a small part of the equation.

- In fact I'm more likely to buy in if the current interval was uncommercial (and VIL had a cheaper share price).

Dis: Sentiment = None because there are too many questions