Interesting promotional discussion. Remember the target reservoir is a laterally discontinuous sand (1 of 3 closely spaced existing wells found no reservoir) and will require several delineation wells to actually prove up substantial reserves. At best (upon success) one might expect proven reserves for a 40 acre location along with discounted probable volumes for surrounding direct offset locations. Even that would require a production history of 2-3 months to establish decline curves for an expected cumulative estimate. As a guide to expectations if one assumes 10 ft of reservoir and 500 bo/ac-ft cumulative recovery, that's about 200,000 bo per well (about 150 mbo net to equity interest) which is in line with pre-drill promotion.
Also the bulk of the prospective value (over 2/3rds?) is in the deeper target which is not being tested by the current well or other wells in the vicinity. So an initial success will certainly be encouraging, but it will be quite some time, several wells and a substantial further investment until the valuations being lofted about have any basis in reality.
Since the intermediate string was run last week and only 1-2 days drilling one would expect logs to have been run over the weekend. Analysis shouldn't take more than 10 minutes, sand or no sand? How thick?
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