TCG, not sure how you get the permeability comment. At this stage Neon would have little to go on other than fractured samples within the drilling mud. Testing will be proof whether there is sufficient permeabilty or not. With a high reservoir net to gross ratio porosity is likely be commercial and being sandstone, permeability is more likely to be commercial. Infringing siltstones or shale may or may not be a negative influence depending on whether they are present in this zone.
Remember they used a viscous drilling mud to keep the hole integrity. This type of mud supresses shows so data on permeability is with held.
CJames, In your analysis you apply a recovery factor after you have already accounted for matters that make up the recovery figure which in effect double discounts the recoverable oil. Taking out your 10% recovery would mean a recoverable reserve of 57MB on your calcs.
I don't think such a figure is out of the question given Oxys recent(2009)175-250mb recoverable discovery in nearby Kern County.
I think we could be looking at 100cps+ subject to testing being commercially viable. Not only do we have the Lower Stevens level but we also have a further 800 ft of shows in other zones and we have the Fruitvale shale which is only partly penetrated. The Fruitvale shale will likely be tested first as they normally start with the lowest find and work their way up when testing.
NEN Price at posting:
43.0¢ Sentiment: LT Buy Disclosure: Held
