There seems to be another factor to take account of: the additional thickness of the formation in the northern part. Just calculating potential volume of the reserve (area x reported thickness) and multiplying that by reported porosity gives a pretty massive figure. I think that I came out with a figure exceeding 1 bn barrels. But if the thickness of the formation varies (as may do the porosity), what meaning can the figures have?. Then there is the big question of recoverability. I think that I was working on about 70% but cannot remember where I got that figure from. That probably relies upon massive drilling. That, in turn, depends upon the degree of natural fracturing.
If meridian is drilling into a 30ft layer and the formation is 40 ft thicker in the northern part of sugarloaf, that is 120ft for the upper zone(?) plus 120ft for the middle zone (?) plus 50 ft for the lower one (?), how do you even start to compare them? There could be 2 cubic miles of saturated chalk down there.
ADI Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
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